IOU Financial enters into $50 million credit facility with Midcap Financial

• Facility increases availability of capital to support growth, and lowers funding cost of capital
• Marks completion of important strategic objective for IOU management 

Montreal, Quebec--(Newsfile Corp. - April 22, 2016) - IOU Financial Inc. (TSXV: IOU) ("IOU Financial" or the "Company"), a leading online lender to small businesses, is pleased to announce that it has entered into a $50 million credit facility with MidCap Financial ("MidCap"). The facility will have an initial commitment amount of $25 million and will be expandable to $50 million at IOU's request and the lender's acceptance. 

MidCap is a middle market-focused, specialty finance firm that provides senior debt solutions to companies across all industries.

"The credit facility will not only increase the availability of capital to support our growth, but also lowers our funding cost of that capital. I am very pleased to have concluded this agreement with MidCap, achieving an important strategic objective for our management team, and further positioning the Company for continued growth," said Phil Marleau, CEO of IOU Financial. 

CCFL Capital, an Exempt Market Dealer, acted as the Company's financial advisor in connection with the credit facility.

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 e-commerce 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. Forward-looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU Financial expects or anticipates may occur in the future. These forward looking statements can be identified by the use of words such as "anticipates", "believes", "estimates", "expects", "may", "plans", "projects", "should", "will", or the negative thereof or other variations thereon. These forward-looking statements reflect management's current views and are based on certain assumptions including assumptions as to future economic conditions and courses of action, as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are subject to risks and uncertainties and no assurance can be given that any of the events anticipated by such statements will occur or, if they do occur, what benefit IOU Financial will derive from them. A number of factors could cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, risks related to the Company's incapacity to execute on its business plan, risks inherent in growing a new business, dependence on third-party service providers, competition, regulatory risk, dependence on key personnel, risks related to rapid growth of IOU Financial, security and confidentiality risk, risk related to inability to attract borrowers and lenders, technological development risk, IT disruptions, maintenance of client relationships, litigation risk, volatility of stock price, and other factors that are beyond its control. Additional information concerning these and other factors can be found beginning on page 17 under the heading "Risks and Uncertainties" in IOU Financial's management's discussion and analysis dated April 22, 2016, which is available under IOU Financial's profile on SEDAR at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE IOU FINANCIAL INC.

For further information: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225; Mayco Quiroz, Chief Financial Officer, (514) 789-0694 ext. 298

Related Links
http://www.ioufinancial.com

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