LM Funding America, Inc. - LMFA STOCK NEWS

LM Funding America, Inc. (NASDAQ:LMFA) announced a 1-for-5 reverse stock split effective May 7, 2021, to boost the trading price of its common stock and comply with Nasdaq's $1.00 minimum bid price requirement. This decision follows shareholder approval from the Annual Meeting held on May 11, 2020. The reverse split will convert every 5 shares into 1 share, with cash payments for any fractional shares. The company believes this strategy will attract institutional investors and enhance its cash position for potential acquisitions.

LM Funding America (NASDAQ: LMFA), a specialty finance company, announced plans to purchase up to $2 million in digital assets, including Bitcoin and Ether. This acquisition will amount to approximately 10% of LMFA's total assets and is part of its capital allocation strategy. The company aims to enhance its operational capabilities in digital transactions through organic growth and acquisitions. The announcement follows a successful IPO by its affiliate, LM Acquisition Opportunities, which raised $103.5 million. LMFA plans to develop internal controls to manage these digital assets effectively.

LMF Acquisition Opportunities, Inc. (NASDAQ:LMAOU) announced that from March 18, 2021, investors can separately trade shares of its Class A common stock and warrants. The Class A common stock will trade under the symbol LMAO, while the warrants will trade as LMAOW. Units not separated will continue under the symbol LMAOU. This initiative follows the company's initial public offering, managed by Maxim Group LLC. The offering's details can be accessed through the prospectus available from Maxim Group.

LM Funding America, Inc. (NASDAQ:LMFA) has successfully settled a loan receivable agreement with Borqs Technologies, Inc. (BRQS), purchasing around $18.2 million of debt for approximately $15.5 million. In return, LMFA received about 22.7 million shares of Borqs, which were sold for approximately $32.6 million, netting LMFA around $5.7 million after expenses. CEO Bruce M. Rodgers highlighted the transaction's profitability, exceeding initial projections of $2 million. This strategic move reinforces LMFA's role in providing financial solutions to companies on Nasdaq and NYSE.

LMF Acquisition Opportunities announced the successful closing of its upsized initial public offering (IPO), raising $103.5 million through the sale of 10,350,000 units at $10.00 per unit. Each unit includes one share of Class A common stock and one warrant to purchase additional stock at $11.50. The offering commenced trading on Nasdaq on January 26, 2021, under the symbol LMAOU. A majority of the funds, approximately $105.57 million, have been placed in trust. The SEC declared the registration statement effective on January 25, 2021.

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.

LM Funding America, Inc. (NASDAQ: LMFA) announced a Master Loan Receivable Purchase and Assignment Agreement to acquire up to $18 million in loan receivables from Borqs Technologies, Inc. (BRQS) at a discount ranging from 2.5% to 22.5%. The agreement includes a Settlement Agreement where Borqs will issue common stock to LMFA at a 30% discount. If completed, LMFA expects approximately $2 million in net proceeds. This transaction diversifies LMFA's asset classes and aligns with its strategy of financing receivables at a discount.

LM Funding America, Inc. (LMFA) announced new contracts with four condominium associations, totaling over 2,885 residences, to mitigate budget shortfalls caused by the pandemic. This expansion increases the company's total accounts to approximately 36,000, adding about 11,000 doors in 2020. CEO Bruce M. Rodgers credited a referral program for recent growth and anticipates more associations will contract as economic pressures persist. The company provides funding to nonprofit community associations in Florida and other states, leveraging delinquent account rights for improved financial health.

LM Funding America (LMFA) announced new contracts with two South Florida condominium associations, increasing their total door count to approximately 33,000. This move aims to address funding shortfalls due to the economic downturn caused by the pandemic. CEO Bruce M. Rodgers noted that the company anticipates rising delinquency rates in community associations, likely correlating with unemployment trends. Additionally, the recent underwritten stock offering provided the company with about $9 million, boosting its cash position to approximately $14.4 million.