Company sells common shares, one-year warrants in brokered offering
By Devika Patel
Knoxville, Tenn., June 20 - IOU Financial Inc. said it settled a third tranche of a C$5 million private placement of stock and warrants, raising about C$2.63 million. The company raised about C$1.45 million on Feb. 18, when it was doing business as MCO Capital Inc., and raised about C$1 million on May 2. It will raise about C$250,000 by June 30.
The company sold class B units of shares and warrants at C$0.10 apiece in the first tranche. The warrants of that tranche are exercisable at C$0.125, a 68.35% discount to the April 29 closing share price of $0.395.
In the second tranche, the company sold units at C$0.40 each, with the warrants exercisable at C$0.50. That strike price is a 26.58% premium to the April 29 price. The company sold units at C$0.40 apiece in the third tranche as well, with warrants also exercisable at C$0.50.
HDL Capital Corp. is the lead agent.
The investment fund is based in Toronto.
| Issuer: | IOU Financial Inc. (formerly MCO Capital Inc.)
|
| Issue: | Units of class B shares and warrants
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| Amount: | C$5 million
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| Price: | C$0.10, C$0.40
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| Warrants: | Yes
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.125, C$0.50
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| Agent: | HDL Capital Corp. (lead)
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| Pricing date: | Feb. 18 (for about C$1.45 million), May 2 (for about C$1 million), June 20 (for about C$2.63 million), June 30 (for about C$250,000)
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| Stock symbol: | CNSX: IOU
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| Stock price: | C$0.395 at close April 29
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