IOU Financial Reports Q1 Results, Lost $1M
IOU Financial lent (CAD) $22.1 million in the first quarter of this year, down from $25.4 million over the same period last year. This translated into a $995,085 loss on $4.3 million in revenue.
IOU had previously disclosed that they were in breach with a third party lender, MidCap Financial, over the consolidated tangible net worth covenant of their agreement. IOU has a $50 million credit facility with MidCap, who granted them a waiver on that breach last month in April. Their latest earnings report, however, states that IOU had now also breached the fixed charge coverage ratio covenant, and that MidCap has just granted them another waiver.
MidCap Financial also just recently approved a credit facility for Fundation, an IOU competitor.May 31, 2017