LAS VEGAS, NV--(Marketwired - December 23, 2013) - IEG Holdings Corp (OTC PINK: IEGH), a provider of $2,000 to $10,000 online personal loans to consumers, announced that it has entered into a $5 million common stock purchase agreement with DME Capital LLC, a leading institutional investor. The Company has agreed to file a registration statement with the U.S. Securities & Exchange Commission ("SEC") covering the shares that may be issued to DME Capital under the terms of the common stock purchase agreement.
After the SEC has declared the registration statement related to the transaction effective, the Company has the right at its sole discretion over a period of two years to sell $5 million of its common stock to DME Capital under the terms set forth in the agreement. Proceeds from this transaction will be used to fund the company's business development and for general corporate purposes.
"This is a great step forward for IEGH," commented Paul Mathieson, Chairman and CEO of IEG Holdings Corp. "DME is an excellent partner for us with a great track record and a long-term commitment to our industry. This transaction offers the Company a very cost efficient and readily available form of financing. The $5 million available under the agreement is ample funding for our immediate expansion requirements, which we believe will take our business to the next level. This agreement provides us with the flexibility to expand our services into new states, while still serving our current market."
Matt Graci, Senior Partner at DME, stated, "We are very pleased to be entering into this agreement with IEGH. DME has been following the progression of the Company over several months and we are excited to be partnered with a company that serves the public. We are very impressed by IEG's business plan and management's ability to prepare and timely execute on their objectives."
About IEG Holdings Corporation
IEG Holdings Corporation (OTC PINK: 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 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 all of Nevada, Arizona, Illinois and Florida. IEGH applied for a New Jersey license on 6th December 2013 and plans to apply for licenses in New York, Texas and California in 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 $2,000 to $10,000 and have a term of three 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. For more information about the Company, visit www.investmentevolution.com.
About DME Capital LLC
DME Capital LLC is an independent, employee owned 'Wall Street Firm' that has diversified operations serving publicly traded companies listed / traded on the New York Stock Exchange, AMEX, NASDAQ, OTCBB and Toronto Stock Exchange. DME Capital LLC invests in companies through open market purchases, direct investments, PIPE's, IPO's, secondary offerings, private transactions, equity lines, convertible notes, short and long term loans. DME Capital LLC is a value-added private capital investment firm and a full service investment and financial consulting organization, dedicated to helping small and micro-cap growth-oriented public companies emerge as industry leaders. Since inception, DME Capital has enjoyed a higher than average internal rate of return on its investments. DME's primary objective is to identify investments in public companies that can provide above-average returns on invested capital.
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.