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IOU Financial Inc.’s Results for the Fiscal Year Ended December 31, 2013

MONTREAL, April 18, 2014 – IOU FINANCIAL INC. (“IOU” or “the Company”; ticker symbol IOU/TSX-V) recorded financial revenues of $4,047,105 and $937,530, during both fiscal years ended December 31, 2013 and 2012 respectively. The Company closed fiscal 2013 with a net loss attributable to common shareholders of $1,444,702, or $0.03 per share, compared with a net loss of $1,797,456 or $0.06 per share in 2012.

At December 31, 2013, total assets stood at $15,921,263 compared with $8,653,374 on December 31, 2012, and consisted mainly of cash on hand and commercial loans receivable. Total liabilities at December 31, 2013 amounted to $8,688,312 compared with $3,405,259 at December 31, 2012, and consisted mainly of funds owed on the Company’s credit facility. Total shareholders’ equity amounted to $7,232,951 at December 31, 2013, compared with $5,248,115 at December 31, 2012.

IOU Financial’s financial statements and management discussion & analysis for the year ended December 31, 2013 have been filed on SEDAR and are available at www.sedar.com.

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forwardlooking statements, whether as a result of new information, future events, or otherwise. The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298

New Addition to Board of Directors

MONTREAL, March 7, 2014 – IOU Financial Inc. (“IOU Financial”) (CSE: IOU) is pleased to announce that Mr. David Cynn has joined its Board of Directors.

Mr. Cynn is a Partner at Killearn Capital, a New York private equity firm focused on specialty finance companies. Prior to joining Killearn Capital, Mr. Cynn was a Partner at Lightyear Capital, a New York private equity firm focused on financial services investments. Mr. Cynn, who spent over ten years at Lightyear, led that firm’s specialty finance efforts. Prior to Lightyear Capital, Mr. Cynn worked in Morgan Stanley’s Mergers and Acquisition Department for four years as well as two years in HSBC’s Mergers and Acquisition Department. He began his career in Chase Manhattan’s Management Development Program.

Mr. Cynn received an MBA from the University of Chicago’s Graduate School of Business where he graduated with high honors and received a BS from Cornell University.

“Mr. Cynn brings a wealth of industry experience and we are excited to have him join our Board”, said Mr. Evan Price, Chairman of the Board. “His experience and expertise on the US financial market will constitute an important asset for the Corporation.”

“I am looking forward to joining IOU Financial’s Board as the Corporation’s strong management and significant growth opportunities are unique in the financial service sector”, said Mr. Cynn.

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU Financial including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. The transaction is still subject to due diligence by Palos Management and there can be no assurances that it will be completed. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU Financial does not assume any obligation to update or revise its forwardlooking statements, whether as a result of new information, future events, or otherwise.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298

Renewal and Increase of IOU Financial’s Credit Facility

MONTRÉAL, Québec, February 12, 2014 – IOU Financial Inc. (“IOU”) (CNSX: IOU), an online lender to small businesses, announced today that Accord Financial Inc. (TSX: ACD) has exercised its option to extend IOU’s current credit facility by an additional one-year term, being up to June 14, 2015, by providing IOU an increase in such credit facility from $10.0 million to $15.0 million.

About IOU Financial

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties, relating to liquidity risks, risks inherent in growing a new business, dependence on third-party service providers, credit risks, competition, regulatory risk, and assumptions that could cause the company’s actual results to differ from current expectations, please refer to the section “Risks and Uncertainties” of IOU’s most recent Management’s Discussion and Analysis (“MD&A”), which may be consulted at www.sedar.com. IOU cautions that the foregoing list of factors is not exhaustive. The forwardlooking statements presented in the MD&A reflect IOU’s expectations as at the date of the MD&A. IOU Financial does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation.

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298

The Canadian National Stock Exchange (CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

Approval to List on the TSX Venture Exchange

Montreal, Quebec, January 23, 2014 — IOU Financial Inc. (CSE: IOU) (“IOU Financial” or the “Company”), is pleased to announce that it has received conditional approval from the TSX Venture Exchange (“TSX-V”) to list its Class B common shares on the TSX-V.

A migration from the CSE to the TSX-V is considered to be an important milestone for IOU Financial as it is expected to provide the Company with broader market recognition.

Listing is subject to compliance with certain TSX-V requirements and to the receipt of final approval from the TSX-V. For more information on the Company, please refer to the Company’s public documents available on SEDAR (www.sedar.com).

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward looking statements, whether as a result of new information, future events, or otherwise.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298

IOU Financial Sells Loans to the Palos/IOU High Yield Fund

MONTRÉAL, January 8, 2014 – IOU Financial Inc. (“IOU Financial”) (CNSX: IOU) is pleased to announce that it has entered into an agreement with Palos Management Inc. and the Palos/IOU High Yield Fund (the “Fund”), a fund managed by Palos Management Inc., whereby its whollyowned US subsidiary, IOU Central Inc., will have the opportunity, but not the obligation, to sell to the Fund, and the Fund will have the opportunity, but not the obligation, to purchase, up to US$7.5 million aggregate principal amount of loans originated, over the course of the next twelve months.

This transaction may be considered a related party transaction within the meaning of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“61-101”) since Philippe Marleau, Chief Executive Officer and a director of IOU Financial, is a shareholder in a company that has control over more than 10% of IOU Financial’s common shares and which controls, indirectly, Palos Management Inc. However, this transaction is exempt from the valuation and minority approval requirements provided under such regulation since IOU Financial, as a CNSX-listed issuer, is not listed on “specified markets”, as defined under 61-101, and the fair market value of the transaction represents not more than 25% of IOU Financial’s market capitalization.

The Board of Directors of IOU Financial has unanimously approved the transaction. Philippe Marleau declared his interest prior to the approval by the Board of Directors of IOU Financial and abstained from voting thereon.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU Financial including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. The transaction is still subject to due diligence by Palos Management and there can be no assurances that it will be completed. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU Financial does not assume any obligation to update or revise its forwardlooking statements, whether as a result of new information, future events, or otherwise.

The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298