Lionheart Acquisition Corporation II Enters into Non-Binding Term Sheets for Forward Purchase Agreement and Committed Equity Facility with Cantor Fitzgerald L.P.

Rhea-AI Summary

Lionheart Acquisition Corporation II (LCAP) has entered into a non-binding term sheet with Cantor Fitzgerald L.P. for a potential purchase of up to 3.5 million shares before closing its business combination with MSP Recovery, LLC. Post-closing, an equity facility could fund the purchase of up to $1 billion in shares. The anticipated business combination meeting is set for May 18, 2022, with the transaction expected to close by May 20, 2022.

Positive

• Strategic partnership with Cantor Fitzgerald could enhance liquidity and investor confidence.
• Potential $1 billion funding from Cantor may support growth post-acquisition.

Negative

• Dependence on Cantor's purchasing commitments may create financial uncertainty.
• The need for a definitive agreement introduces risk regarding the actual execution of the terms.

• Cantor may purchase up to 3.5 million shares of Lionheart Acquisition Corporation II stock before closing of the business combination with MSP Recovery, LLC
• Equity facility covers the purchase of up to $1 billion in shares of the combined company after closing of the business combination

CORAL GABLES, Fla.--(BUSINESS WIRE)-- MSP Recovery, LLC (“MSP Recovery” or “MSP”), a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery leader, and Lionheart Acquisition Corporation II, a Delaware corporation (“LCAP” or the “Company”), today announced that LCAP has entered into a non-binding term sheet with an affiliate of Cantor Fitzgerald L.P. (“Cantor”) pursuant to the terms of which, upon negotiation and execution of a definitive forward purchase agreement, Cantor may purchase, prior to the closing of LCAP’s business combination with MSP (“Business Combination”), and at a price at or below the redemption price, up to 3.5 million shares of Class A Common Stock of LCAP (“Shares”) from public stockholders of LCAP who have elected to redeem such shares.

If Cantor makes any such purchases, Cantor also will agree to (i) transfer to MSP for cancellation any warrants to purchase Shares received as a result of being the stockholder of record of a Share as of the close of business on the closing date of the Business Combination following the redemption, pursuant to the previously announced and declared LCAP dividend, and (ii) waive any redemption right that would require the redemption of the Shares in exchange for a pro rata amount of the funds held in LCAP’s trust account.

The Company and Cantor also entered into a second non-binding term sheet with respect to a committed equity facility. Upon entering into a purchase agreement on mutually agreed terms in respect of such a facility, Cantor, from time to time following the closing of the Business Combination, would be required to purchase, at the direction of the Company, up to $1 billion in Shares. Prior to any sales under the committed equity facility, the Company would be required to file a resale registration statement with the SEC and have it declared and maintained effective.

Additional information on both term sheets has been filed by LCAP with the Securities and Exchange Commission on Form 8-K.

MSP Recovery previously announced a business combination with Lionheart Acquisition Corporation II (Nasdaq: LCAPU, LCAP, LCAPW, “Lionheart” or “LCAP”). LCAP will hold a special meeting of stockholders (the “Special Meeting”) at 11:00 a.m. Eastern Time on May 18, 2022 to approve, among other things, the Business Combination with MSP. Stockholders of record at the close of business on April 18, 2022 are entitled to receive notice of and to vote at the Special Meeting. Closing is anticipated for May 20, 2022.

Shares of Class A Common Stock of the combined company are anticipated to commence trading on Nasdaq following the Closing. The combined company’s public warrants are anticipated to continue to be traded on Nasdaq under the symbol “LCAPW”, and the new warrants issued in connection with the previously announced and declared LCAP dividend are anticipated to commence trading on Nasdaq under the symbol “MSPRW” when issued.

About MSP Recovery
Founded in 2014, MSP Recovery has become a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery leader, disrupting the antiquated healthcare reimbursement system with data-driven solutions to secure recoveries against responsible parties. MSP Recovery provides the healthcare industry with comprehensive compliance solutions, while innovating technologies designed to help save lives. For more information, visit: www.msprecovery.com

About Lionheart Acquisition Corporation II
On January 4, 2022, LCAP filed with the U.S. Securities and Exchange Commission (the "SEC") a definitive proxy statement regarding an extension of the deadline to complete its business combination from February 18, 2022 to August 18, 2022 (the "Extension Proxy Statement"). Further, Lionheart Acquisition Corporation II is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. For more information, visit: www.LCAP2.com.

No Offer or Solicitation
No offer or offering of equity interests or securities of any kind is being made, conducted or extended at this time. This communication is for informational purposes only and does not constitute or include an offer to sell, or a solicitation of an offer to purchase or subscribe for, equity interests or securities of any kind or a solicitation of any vote of approval, nor shall there be any sale, issuance or transfer of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any such offer or solicitation will be made only in connection with the delivery of a prospectus meeting the requirements of the Securities Act of 1933, as amended (“Securities Act”), or exemptions therefrom.

Cautionary Note Regarding Forward Looking Statements
This communication includes forward looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”) and Section 27A of the Securities Act, which include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation and availability of resources and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These statements are often accompanied with or by words such as “expects”, “plans”, “ projects”,” forecasts”,” estimates”,” intends”, “expects”, “anticipates”, “seeks”, “ targets”, “continues”, “ believes”, “opinion”, “will”, “could”, “future”, “growth”, or “may” (or the negatives thereof) or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward looking statements include, but are not limited to, statements regarding MSP’s plans, goals and objectives, forecasts, budgets or projections and any related assumptions and statements and the implied enterprise value and MSP’s expectations with respect to future performance. There is no guarantee that prospects or results or the timing of events included or referred to in this communication, including the continued utilization of LifeWallet, or that it will save lives, will be achieved or that MSP will be able to implement successfully its investment strategy or achieve its investment objectives or return targets. Accordingly, we caution you against relying on forward-looking statements. Forward looking statements also are subject to a number of significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those express or implied in the forward-looking statements. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of management and are not predictions of actual performance. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions, and such differences may be material. Many actual events and circumstances are inherently subject to significant business, economic and competitive uncertainties and contingencies, and are beyond the control of MSP and are difficult to predict. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Factors that may cause such differences include, but are not limited to, operating costs and future business, investment, holding and sale decisions and costs; the failure to enter into a definitive agreement in respect of the arrangements contemplated by the non-binding term sheets for the forward purchase agreement and committed equity facility with Cantor Fitzgerald L.P; the transactions contemplated by such term sheets not achieving their intended result or having a negative impact on the trading of LCAP’s equity securities; the risks that the anticipated benefits of the launch and adoption of LifeWallet are not realized or are delayed; the risks associated with MSP’s business, including, among others, MSP’s ability to capitalize on its assignment agreements and recover monies that were paid by the assignors; litigation results; the validity of the assignments of claims to MSP; a determination that MSP’s claims are not reasonable, related or necessary; the failure of MSP’s clients to renew their agreements with MSP (or terminate those agreements early); MSP’s claims being within applicable statutes of limitations; the inability to successfully expand the scope of MSP’s claims or obtain new data and claims from MSP’s existing assignor base or otherwise; the limited number of MSP’s assignors and the associated concentration of MSP’s current and future potential revenue; internal improvements to claims and retail billing processes by MSP’s clients that reduce the need for and revenue generated by MSP’s products and services; healthcare spending fluctuations; programmatic changes to the scope of benefits and limitations to payment integrity initiatives that reduce the need for MSP’s services; delays in implementing MSP’s services to its claims; system interruptions or failures; cyber-security breaches and other disruptions that could compromise MSP’s data; MSP’s failure to maintain or upgrade its operational platforms; MSP’s failure to innovate and develop new solutions, or the failure of those solutions to be adopted by MSP’s existing and potential assignors; MSP’s failure to comply with applicable privacy, security and data laws, regulations and standards, including with respect to third party providers; changes in legislation related to healthcare programs and policies; changes in the healthcare market; negative publicity concerning healthcare data analytics and payment accuracy; competition; successfully protecting MSP’s intellectual property rights; the risk that third parties may allege infringement of their intellectual property; changes in the healthcare regulatory environment and the failure to comply with applicable laws and regulations or the increased costs associated with any such compliance; failure to manage MSP’s growth; the inability to attract and retain key personnel; MSP’s reliance on its senior management team and key employees and the loss it could sustain if any of those employees separated from the business; the failure of vendors and providers to deliver or perform as expected, or the loss of such vendors or providers; MSP’s geographic concentration; MSP’s relatively limited operating history, which makes it difficult to evaluate its current or future business prospects; the impact of the ongoing COVID-19 pandemic; and the risk that MSP may not be able to develop and maintain effective internal controls. The foregoing list of factors is not exhaustive. If any of these risks materialize or MSP’s assumptions prove incorrect, actual results may differ materiality from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The foregoing list of factors is not exclusive. This communication speaks only as of the date indicated, and the statements, expressions, information and data included therein may change and may become stale, out-of-date or no longer applicable. We do not have, and do not undertake, any obligation to update, amend or revise this communication (or to provide new, amended or revised materials), including with respect to any forward-looking statements, whether as a result of new information, future events, changed plans or circumstances or any other reason, except as required by law. The communication should not be relied upon as representing our assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the communication, including the forward-looking statements.

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For Media:

ICR, Inc.

MSP@icrinc.com

For Investors:

ICR, Inc.

Marc Griffin

Marc.Griffin@icrinc.com

Source: Lionheart Acquisition Corporation II

FAQ

What is the total value of shares Lionheart Acquisition Corporation II plans to purchase before closing?

Lionheart Acquisition Corporation II plans to purchase up to $1 billion in shares.

When is the special meeting of Lionheart stockholders scheduled?

The special meeting is scheduled for May 18, 2022.

What shares may Cantor Fitzgerald purchase from Lionheart Acquisition Corporation II?

Cantor Fitzgerald may purchase up to 3.5 million shares prior to closing.

What is the expected closing date for the business combination with MSP Recovery, LLC?

The business combination is expected to close on May 20, 2022.