NEW YORK, NY / ACCESSWIRE / December 29, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on IEG Holdings Corporation (OTCQB: IEGH).
The report is available here: IEGH December 2017 Update Note.
IEG Holdings Corporation (OTCQB: IEGH) provides online unsecured consumer loans under the brand name “Mr. Amazing Loans” via its website, www.mramazingloans.com, in 20 US states. The company offers $5,000 and $10,000 personal loans over a five-year term at rates ranging from 19.9% to 29.9% APR. IEG Holdings plans future expansion to a total of 25 US states, which would cover 240mn people and represent approximately 75% of the US population.
Since 2013, IEGH has obtained additional state lending licenses, and they are licensed and originating direct consumer loans in 20 states including: Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia, and Wisconsin. The Company was founded in 2010 and is headquartered in Las Vegas, Nevada.
Highlights from the note include:
IEGH to enter Crypto / Blockchain space with new entity
On December 22, 2017, IEGH Chairman and CEO Paul Mathieson announced that IEGH would enter the cryptocurrency space with the incorporation of a new entity, Investment Evolution Crypto, LLC. The new entity is a 100% wholly-owned subsidiary that will explore the practicality and legality of working with Mr. Amazing Loans to accept payment for customer loans by way of leading Crypto / Blockchain currencies such as Bitcoin, provide the cryptocurrency equivalent of $5,000 and $10,000 loans, and potentially issue its own cryptocurrency. The decision to enter the cryptocurrency space is a rational one for IEGH, which already has an existing business issuing $5,000 and $10,000 consumer loans through online channels, and the company may be able to leverage the growing interest in cryptocurrency to grow its business and raise new capital that could be deployed to grow its loan book.
IEGH releases 3Q17 results
IEGH released 3Q17 results on November 8, 2017, with the filing of its 10-Q with the SEC. During 3Q17 IEGH increased its advertising spend and maintained its quarterly dividend of $0.005 per common share. Revenues, primarily consisting of interest revenue, were $407,370, down from $413,941 in 2Q17 and 557,551 in 3Q16. As of September 30, 2017, IEGH had 1,546 loans outstanding with an unpaid principal balance of $5.92mn. Operating expenses during the quarter declined to $1.48mn from $1.54mn in the year-ago period. The company increased advertising expenses during the quarter, which is expected to help increase loan originations in future periods. IEGH also resumed payments to CEO Paul Mathieson, at an annual salary of $1.2mn, and reduced rent and other operating expenses. We estimate the company is now operating at an annualized expense rate of slightly under $6mn and have assumed the company will manage the business for growth rather than targeting breakeven in the short run. Net loss in 3Q17 was ($1.7mn), including a legal settlement of $0.6mn. For the quarter, EPS came in at a loss of ($0.13) versus ($0.10) in the year-ago period.
Price target moves to $2.00
We are updating our price target for IEGH to $2.00 per share following recent results and a new share count assumption following recent financing activities. IEGH is a high risk, high potential reward company in the consumer finance sector.
Please review important disclosures at www.seethruequity.com.
About IEGH Holdings Corporation
IEG Holdings Corporation provides online $5,000 and $10,000 unsecured consumer loans under the brand name, “Mr. Amazing Loans,” via its website, www.mramazingloans.com. For more information about IEG Holdings, visit www.investmentevolution.com.
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