Business News • MarketWire • FinTech Ventures Fund, LLLP Announces Acquisition of Shares of IOU Financial Inc. |
FinTech Ventures Fund, LLLP Announces Acquisition of Shares of IOU Financial Inc. |
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FinTech Ventures Fund, LLLP Announces Acquisition of Shares of IOU Financial Inc.
ATLANTA, GEORGIA--(Marketwired - Jan. 4, 2016) - FinTech Ventures Fund, LLLP ("FinTech"), announced today pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues that it has acquired ownership of 8,878,905 common shares ("Common Shares") of IOU Financial Inc. ("IOU"), pursuant to a Share Purchase Agreement dated December 31, 2015, between FinTech and Qwave Capital LLC ("Qwave"). FinTech is a newly created fund designated for investment into alternative lenders, which is managed by Qwave. The Common Shares purchased represent approximately 14.41% of the issued and outstanding Common Shares of IOU. Each of the purchased Common Shares was acquired by FinTech from Qwave for a purchase price of CDN$0.50 per Common Share, for aggregate consideration of CDN$4,439,452.50. In addition to the purchased Common Shares, FinTech owns CDN$1,000,000 in principal amount of convertible unsecured subordinated debentures (the "Debentures") of IOU. The Debentures are convertible at their holders' option into Common Shares at a price of $0.75 per Common Share, representing a conversion rate of 1,333.33 Common Shares for each $1,000 principal amount of Debentures. If all Debentures owned by FinTech were fully converted, FinTech would exercise ownership, control or direction, over 10,212,238 Common Shares, representing 16.22% of IOU's then issued and outstanding Common Shares.
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