Neuberger Berman Voluntarily Ceases to Report on the AMR System in respect of IOU Financial

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TORONTO, Feb. 15, 2023 /CNW/ - In accordance with applicable Canadian securities laws, Neuberger Berman Investment Advisers LLC ("NBIA") announced today that it is voluntarily ceasing to file reports in accordance with the alternative monthly reporting system (the "AMR System") under Part 4 of National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in respect of IOU Financial Inc. (the "Issuer").

NBIA currently exercises control and direction over, and immediately before and immediately after NBIA elected to cease filing reports under the AMR System in respect of the Issuer, NBIA exercised control and direction over, an aggregate of 15,665,839 common shares in the capital of the Issuer ("Common Shares"), representing approximately 14.87% of the issued and outstanding Common Shares, calculated based upon a total of 105,335,596^[1] issued and outstanding Common Shares.

The Common Shares are held by NBIA for investment purposes. NBIA and its affiliates may, from time to time, depending on market and other conditions, increase or decrease control or direction over securities of the Issuer through market transactions, private agreements, or otherwise. NBIA and its affiliates have no current intention, but may in the future form an intention, with respect to one or more of the transaction or matters referred to in paragraphs (b) through (k) of Item 5 Form 62-103F2 Required Disclosure by an Eligible Institutional Investor under Section 4.3.

Contemporaneous with this news release, NBIA has filed a Form 62-103F2 Required Disclosure by an Eligible Institutional Investor under Section 4.3 on the Issuer's SEDAR profile which, among other things, amends the information disclosed in the alternative monthly report filed by NBIA on January 5, 2021 in respect of the Issuer.

NBIA is the investment manager of a number of pooled investment funds and manage accounts of institutional and individual clients (collectively, the "Accounts"). NBIA does not beneficially own, but exercises control and direction over, certain securities of the Issuer as the investment manager of the Accounts. NBIA controls, and holds its Common Shares through, NB Specialty Finance Fund LP ("NBSF 1").

NBSF 1 and the Issuer are party to an Investor Rights Agreement dated as of December 3, 2020, pursuant to which, among other things, for such time as NBSF 1 (collectively with its affiliates) owns at least 7.5% of the issued and outstanding Common Shares, NBSF 1 has the right, subject to customary requirements, to nominate one (1) nominee to be included in the list of nominees proposed as directors by the Corporation. In addition, for such time as NBSF 1 (collectively with its affiliates) owns at least 7.5% of the issued and outstanding Common Shares or continues to purchase loans under and in accordance with the terms of that certain loan purchase agreement dated October 22, 2020 between NBSF 2018-2 and IOU Central Inc., NBSF 1 has the right, subject to customary requirements, to designate one (1) individual to attend meetings of the Issuer's Board of Directors as a non-voting observer.

NBIA has its head office at 1290 Avenue of the Americas, New York, NY 10104. 

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¹ As at November 18, 2022, as reported by the Issuer in its most recent Management Discussion and Analysis for the three and nine month period ended September 30, 2022.

SOURCE Neuberger Berman Investment Advisers

please contact Alexander Samuelson at [email protected]. The Issuer's head office is located at Suite 1670 - 1 Place Ville Marie, Montreal, Québec, Canada H3B 2B6.