Digital lender IOU Financial Inc. is planning a 1-for-10 reverse stock split, subject to approval by shareholders.

IOU Financial has asked shareholders to vote for the proposal at the company's annual shareholder meeting June 13; it needs a two-thirds majority to pass. The company said the move will raise the price of its common shares, which may appeal to investors.

IOU Financial had 87,825,309 issued and outstanding common shares as of April 19. There will be approximately 8,782,530 common shares if the reverse stock split takes effect, and any resulting fractional common shares will be canceled.