LM Funding Announces Filing of SPAC Registration Statement

Rhea-AI Summary

LM Funding America, Inc. (NASDAQ:LMFA) announced that its subsidiary, LMF Acquisition Opportunities, Inc., has filed a Registration Statement on Form S-1 with the SEC for an initial public offering (IPO) aiming for a base offering size of $75 million, potentially increasing to $86.25 million with full exercise of the underwriters' option. LMF Acquisition will seek targets in the financial services and FinTech sectors. The offering is managed by the Company’s management team and Maxim Group LLC. The Registration Statement is pending effectiveness, and no securities may be sold before that time.

Positive

• Registration Statement filed for a proposed IPO of LMF Acquisition Opportunities, indicating future growth potential.
• Base offering size of $75 million, with a possibility of reaching $86.25 million, which reflects market interest.

Negative

• No guarantees on IPO success as the Registration Statement is not yet effective, introducing risks.
• Dependence on finding suitable acquisition targets in a competitive financial services industry.

TAMPA, FL / ACCESSWIRE / January 8, 2021 / LM Funding America, Inc. (NASDAQ:LMFA) (the "Company") today announced that LMF Acquisition Opportunities, Inc., a special purpose acquisition company and an indirect subsidiary of the Company ("LMF Acquisition"), filed a Registration Statement on Form S-1 (the "Registration Statement") with the Securities and Exchange Commission ("SEC") in connection with a proposed initial public offering of its units. LMF Acquisition intends to search for a target in the financial services industry, including potentially the financial technology (FinTech) sector, and related sectors.

The proposed public offering is expected to have a base offering size of $75 million, or up to $86.25 million if the underwriters' over-allotment option is exercised in full. LMF Acquisition is directly owned by LMFAO Sponsor, LLC, a Florida limited liability company ("LMFAO Sponsor") that was organized by, and to which the initial capital was contributed by, the Company and affiliates of its executive officers. Under the terms of the proposed public offering, LMFAO Sponsor would own 20% of LMF Acquisition's issued and outstanding common stock upon the consummation of the offering. LMF Acquisition will be managed by the Company's management team.

Maxim Group LLC is acting as sole book-running manager for the offering.

When available, copies of the prospectus related to the proposed initial offering by LMF Acquisition may be obtained for free by visiting Edgar on the SEC's website at www.sec.gov or from Maxim Group LLC, 405 Lexington Avenue, 2^nd Floor, New York, NY 10174, at (212) 895-3745.

The Registration Statement relating to the securities of LMF Acquisition has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these 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 any such state or jurisdiction.

Forward-Looking Statements:

This Press Release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the proposed initial public offering of LMF Acquisition and its management. The statements involve risks and uncertainty. Words such as "anticipate," "estimate," "expect," "intend," "plan," and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Such statements are based on the Company's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various risks and uncertainties. Investors should refer to the risks detailed from time to time in the reports the Company files with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019, as well as other filings on Form 10-Q and periodic filings on Form 8-K, for additional factors that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.

Company Contact:

Bruce M. Rodgers, Chairman and CEO
LM Funding America, Inc.
Tel (813) 222-8996
investors@lmfunding.com

SOURCE: LM Funding America, Inc.

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https://www.accesswire.com/623630/LM-Funding-Announces-Filing-of-SPAC-Registration-Statement

FAQ

What is LM Funding America, Inc.'s latest press release about?

The latest press release announces the filing of a Registration Statement for an IPO by its subsidiary, LMF Acquisition Opportunities, Inc.

What is the size of the proposed IPO by LMF Acquisition?

The proposed IPO has a base offering size of $75 million, with a potential increase to $86.25 million if the underwriters' option is fully exercised.

Who is managing the IPO for LMF Acquisition?

The IPO will be managed by the Company's management team and Maxim Group LLC, which is acting as the sole book-running manager.

What sectors is LMF Acquisition looking to target?

LMF Acquisition intends to target the financial services industry, including the financial technology (FinTech) sector.

Why is the Registration Statement important for LM Funding America, Inc. and its investors?

The Registration Statement is crucial as it outlines the proposed IPO plans, which could significantly impact funding and growth opportunities for LM Funding America.