NICOSIA, Cyprus, April 3, 2018 /CNW Telbec/ - Nakula Management Limited ("Nakula"), announces that it has acquired ownership of 2,378,905 common shares ("Common Shares") of IOU Financial Inc. IOU ("IOU") and CDN$1,000,000 in principal amount of convertible unsecured subordinated debentures (the "Debentures") of IOU. The Debentures are convertible at their holders' option into Common Shares at a price of $0.75 per Common Share, representing a conversion rate of 1,333.33 Common Shares for each $1,000 principal amount of Debentures. As such, Nakula acquired approximately 4.18% of IOU's outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of the Debentures only.

Prior to the transaction, Nakula owned 7,000,000 Common Shares, representing approximately 8% of IOU's then outstanding Common Shares. Immediately after the transaction, Nakula owns 9,378,905 Common Shares (representing approximately 10.72% of IOU's outstanding Common Shares) and 1,000 Debentures in principal amount. If all Debentures owned by Nakula are fully converted, Nakula would exercise ownership, control or direction, over 10,712,235 Common Shares representing 12.06% of IOU's outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of the Debentures only.

As a significant shareholder of IOU, Nakula will review and monitor its options and alternatives with respect to additional acquisitions of Common Shares in light of all relevant factors from time to time, including general market conditions, prevailing market prices for the Common Shares, the business and prospects of IOU and alternative investment opportunities available to Nakula. Nakula may explore opportunities to acquire additional Common Shares in the open market, through negotiated or private transactions or otherwise, in each case on such terms and at such times as Nakula may deem advisable and in accordance with all applicable securities laws. In the future, Nakula may cease to explore such opportunities to acquire additional Common Shares, terminate or temporarily suspend any acquisition activities in which it may be engaged or may dispose of Common Shares at any time and from time to time in the open market, through negotiated or private transactions or otherwise, in each case on such terms and at such times as Nakula may deem advisable.

The head office address of IOU is 1670 - 1 Place Ville Marie, Montréal, Québec H3B 2B6.

An Early Warning Report respecting this transaction will be filed on the System for Electronic Document Analysis and Review (SEDAR) under IOU's profile and can be viewed at www.sedar.com.

SOURCE Nakula Management Limited

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