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IOU Announces Cost Reduction Initiatives due to the COVID-19 Pandemic

MONTREAL, April 3, 2020 /CNW Telbec/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announces today cost reduction and other initiatives due to the COVID-19 pandemic.IOU Financial has modified its underwriting standards to temporarily cease lending to industries and geographical areas which are strongly impacted by Covid-19.A  Nevertheless, the company continues to originate loans and support businesses deemed essential by various governments. The duration of the current situation of the pandemic is unknown and considering the uncertainty faced by the North American economy over the coming months, the Company furloughed approximately 40% of its full-time employees and implemented a temporary 20% reduction in salary for all remaining employees.IOU has also announced that more than two-thirds of the value of the Company's convertible debenture holders have agreed to defer the payment of interest from the April 30, 2020 payment period to the June 30, 2020 payment period ("reprieve period") and capitalizing the accrued interest over the reprieve period to the principal amount of the debentures at the end of the reprieve period, in accordance to the terms of the trust indenture under which such debentures were issued.While the current unprecedented economic situation due to the pandemic remains unknown, the Company is prepared to react quickly as the situation may require and looks forward to emerging as a stronger business coming out of this downturn.About IOU Financial Inc.
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