Palos Management Inc.

December 21, 2012 20:26 ET

Palos Management Inc. Acquires Warrants of IOU Financial Inc.

MONTRÉAL, QUÉBEC--(Marketwire - Dec. 21, 2012) - This news release is disseminated pursuant to National Instrument 62-103 The Early Warning System and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report (the "Early Warning Report") regarding the holdings of Palos Management Inc. ("Palos") of warrants ("Warrants") convertible into Class B Common Shares ("Shares") Shares in the capital of IOU Financial Inc. ("IOU"). Palos advises that it holds directly 215,467 warrants convertible into common shares of IOU, representing 0.57% of IOU's issued and outstanding voting shares on a partially diluted basis. The Warrants were acquired as commission for acting as an agent in a private placement of units of IOU.

The Marleau Capital Corporation Inc., Palos Merchant Fund L.P., Robert Boisjoli, 99869 Canada Inc., Sociéte en Commandite BENT, Benevest Inc. and Philippe Marleau may be considered joint actors with Palos in connection with its investment in IOU (the "Palos Entities"). Collectively, the Palos Entities own 8,200,399 Shares and 2,003,012 Warrants and options to acquire Shares, representing approximately 26.06% of the outstanding share capital of the Corporation on a partially diluted basis. Nothing herein is an admission that the Palos Entities are "joint actors" for the purposes of Canadian securities law.

The position in IOU was acquired for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation.

On behalf of Palos Management Inc.
1812-1 Place Ville Marie
Montreal, Quebec H3B 4A9
Tel: (514) 397-0188

Noah Billick, Vice-President, Legal Affairs and Chief Compliance Officer of Palos Management Inc.

Contact Information

  • Noah Billick
    (514) 397-0188