LAS VEGAS, NV--(Marketwired - June 02, 2014) - IEG Holdings Corp. (IEGH) announced May loan volumes grew by 925% to $410,001 compared to January's $40,000 and tripled April's $139,000 monthly volume. Since launching online lending in July 2013, cumulative loan volume has increased by 457% from $237,000 to $1,321,001. The rapid loan volume growth is being driven by leading online lending website www.mramazingloans.com, new joint venture arrangements with low acquisition cost lead sources and aggressive state license expansion.
"The outstanding loan volume growth numbers for the month of May speak for themselves and I am extremely pleased to be able to provide our shareholders with a taste of what is yet to come! We have begun a very exciting growth phase but it is only the tip of the iceberg compared to our long term goals," stated Paul Mathieson, Chairman/CEO and Founder of IEG Holdings Corporation.
IEGH recently received approval for lending licenses in the states of Georgia, Virginia, Missouri and New Jersey and began offering loans online to consumers in these states in late May 2014. The new licenses increased the previous 4 state coverage (Nevada, Illinois, Arizona and Florida) to 8 states and increased the population coverage by 81% from approximately 42 million people to approximately 76 million people. IEGH has submitted an application for Texas (26.5 million population) and plans to lodge its California (38.3 million population) license application shortly. The Company also plans to apply for an additional 23 state licenses over the next 6 months including other large population states of New York, Pennsylvania and Ohio. IEGH's target is to increase US population coverage by a further 274% from the current 8 states and 76 million people to 33 states and 284 million people encompassing approximately 90% of the US market in the next 6 months. Upon these additional license approvals, IEGH anticipates a corresponding increase in monthly loan volumes via its existing distribution network.
"It is important to note that only $36,000 or 8.8% of the loan volume from May has come from our 4 new states, with the majority of the gains a result of new loan lead sources coming on stream. Therefore, we are confident of a strong growth contribution from the new states over June and are aiming to hit our $1 million per month loan volume target ahead of schedule in July or August. Our medium term monthly loan volume target is $3 million per month driven predominantly by continued state expansion and also by new loan lead sources," stated Mathieson.
"The business of Mr. Amazing Loans is not rocket science -- the growth is driven by consistent management execution utilizing our leading online loan platform combined with cost effective customer lead acquisition, thorough and highly efficient underwriting and the ability to access appropriate debt and equity funding."
NASDAQ Up-Listing Intention
IEGH intends to up-list from OTC Pink to OTCQB upon clearance by SEC of S-1 registration statement, anticipated in August 2014. The intention is to further up-list to NASDAQ in April 2015 post completion of the December 31, 2014 audited annual report. In preparation for a NASDAQ up-listing IEGH intends in June 2014, to effect a 1 for 1000 reverse split of its common shares, preference shares and authorized shares, followed by a 10 for 1 forward split. Following the completion of the reverse/forward split IEGH will lodge its S-1 registration statement with the SEC. The reverse/forward will reduce the administrative burden and expense of communicating with shareholders who own less than 1000 shares via IEGH repurchasing these shares, which will reduce the number of shareholders by approximately 1000 from 2325 to approximately 1325. The net effect for remaining shareholders, after the combined reverse/forward split, will be a 1 for 100 reverse split with the aim to place the stock in the appropriate price range for a NASDAQ up-listing.
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About IEG Holdings Corp.
IEG Holdings Corporation (IEGH) provides unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website www.mramazingloans.com. After lending approximately $48 million to over 11,500 borrowers in Australia, the Company Founder and Chairman/CEO Paul Mathieson moved to the U.S. market in 2008 to replicate the successful business model. IEGH now operates online in the USA covering the 8 U.S. states of Nevada, Arizona, Illinois, Florida, Georgia, Missouri, Virginia and New Jersey. IEGH is rapidly expanding and plans to offer loans in 33 states covering 90% of the USA population by late 2014. The Company launched advertising for its online loan origination platform in mid-2013, partnering with top lead generators in the United States. The Company's loans range in value from $3,000 to $10,000 and have a term of four to five years with a 19.9% to 29.9% APR. Significant growth is expected from the online loan origination business, which has the potential to scale much more rapidly and at a higher net margin than the previous brick-and-mortar business. IEGH intends to up-list to NASDAQ in April 2015. For more information about the Company, visit www.investmentevolution.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
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IEGH Chairman/CEO and Founder