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From: NetworkNewsWire (Rep: 0)Date: 01/08/2018 18:11
Forum: Penny Stocks - Msg #1139 - List IEGH msgs Thread #673980503 (Rec: 0)
NetworkNewsBreaks – IEG Holdings Corp. (IEGH) Commences Tender Offer for Stake in LendingClub Corporation (NYSE: LC), Highlights “Flawed” Business Model

Consumer loan provider IEG Holdings Corp. (OTCQB: IEGH) this morning announced the commencement of a tender offer for shares of LendingClub Corporation (NYSE: LC) by which the company aims to exchange 13 shares of its common stock for each share of LendingClub, up to an aggregate of just over 20 million shares, or 4.99 percent of LendingClub’s outstanding shares. In the news release, IEGH identified what it believes to be a number of major risks and problems with the LendingClub business model and management, including weak underwriting standards, lack of company-owned state lending licenses, unsustainable funding sources, excessive cost structure and poor stock market performance. “We ask LendingClub shareholders to consider whether they wish to move forward with an improved online balance sheet lender model aimed at the future or continue to support what we believe to be a flawed ‘broker’ business model,” Paul Mathieson, chairman and chief executive officer of IEGH, stated in the news release. “Weak underwriting standards, tiny gross margins and large, continuing losses is a recipe for disaster.” IEG Holdings believes that changing LendingClub’s business model to a balance sheet lender model would enable the company to generate significantly higher gross margins, provide significantly higher long duration cash flow from customers, build increased goodwill with customers and enable increased customer refinancing.

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