LM Funding America Announces Pricing of Registered Direct Offering for Aggregate Gross Proceeds of $2.6 Million
16 Agosto 2024 - 8:29AM
LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or
the “Company”), a cryptocurrency mining and
technology-based specialty finance company, today announced that it
has entered into a securities purchase agreement with a single
institutional investor to purchase 278,000 shares of common stock
and 605,000 pre-funded warrants in a registered direct
offering, along with Series A warrants to purchase up to an
aggregate of 883,000 shares of common stock and Series B warrants
to purchase up to an aggregate of 883,000 shares of common stock in
a concurrent private placement. The combined effective offering
price for each share of common stock (or pre-funded warrant in lieu
thereof) and accompanying Series A and B warrants is $2.93. The
Series A and B Warrants will have an exercise price of $2.93, be
exercisable beginning on the effective date of stockholder approval
and, in the case of Series A warrants, will expire on the five-year
anniversary from the date of stockholder approval, and in the case
of Series B warrants, will expire on the two-year anniversary from
the date of stockholder approval.
The gross proceeds to the Company from the
registered direct offering and concurrent private placement are
estimated to be approximately $2.6 million before deducting the
placement agent’s fees and other estimated offering expenses
payable by the Company. The offering is expected to close on or
about August 19, 2024, subject to the satisfaction of customary
closing conditions.
Maxim Group LLC is acting as the sole placement
agent in connection with the offering.
The shares of common stock (or pre-funded
warrants in lieu thereof) in the registered direct offering are
being offered pursuant to a shelf registration statement on Form
S-3 (File No. 333-258326), which was declared effective by the U.S.
Securities and Exchange Commission (the “SEC”) on August 16, 2021.
The warrants to be issued in the concurrent private placement and
the shares issuable upon exercise of such warrants were offered
pursuant to an exemption from the registration requirements of the
Securities Act of 1933, as amended (the “Act”) under Section
4(a)(2) thereof and Regulation D promulgated thereunder and have
not been registered under the Act or applicable state securities
laws. A prospectus supplement relating to the shares of common
stock and pre-funded warrants will be filed by the Company with the
SEC. When available, copies of the prospectus supplement relating
to the registered direct offering, together with the accompanying
prospectus, can be obtained at the SEC's website at www.sec.gov or
from Maxim Group LLC, 300 Park Avenue, New York, NY 10022,
Attention: Syndicate Department, or via email at
syndicate@maximgrp.com or telephone at (212) 895-3500.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy, nor will there be
any sales of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such
jurisdiction.
About LM Funding America
LM Funding America, Inc., (Nasdaq: LMFA)
together with its subsidiaries, is a cryptocurrency mining business
that commenced Bitcoin mining operations in September 2022. The
Company also operates a technology-based specialty finance company
that provides funding to nonprofit community associations
(Associations) primarily located in the state of Florida, as well
as in the states of Washington, Colorado, and Illinois, by funding
a certain portion of the Associations' rights to delinquent
accounts that are selected by the Associations arising from unpaid
Association assessments.
Forward-Looking Statements
This press release of LM Funding America, Inc.
(the “Company”) may contain forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Words such as “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “plan,” and “project” and other similar words and
expressions are intended to signify forward-looking statements.
Forward-looking statements are not guaranties of future results and
conditions but rather are subject to various risks and
uncertainties. Some of these risks and uncertainties are identified
in the Company's most recent Annual Report on Form 10-K and its
other filings with the SEC, which are available at www.sec.gov.
These risks and uncertainties include, without limitation,
uncertainty created by the risks of entering into and operating in
the cryptocurrency mining business, uncertainty in the
cryptocurrency mining business in general, problems with hosting
vendors in the mining business, the capacity of the Company’s
Bitcoin mining machines and its related ability to purchase power
at reasonable prices, the ability to finance and grow its
cryptocurrency mining operations, its ability to acquire new
accounts in its specialty finance business at appropriate prices,
the potential need for additional capital in the future, changes in
governmental regulations that affect the Company’s ability to
collected sufficient amounts on defaulted consumer receivables,
changes in the credit or capital markets, changes in interest
rates, and negative press regarding the debt collection industry.
The occurrence of any of these risks and uncertainties could have a
material adverse effect on the Company’s business, financial
condition, and results of operations. Any
forward-looking statements contained in this press release speak
only as of its date. The Company undertakes no obligation to update
any forward-looking statements contained in this press release to
reflect events or circumstances occurring after its date or to
reflect the occurrence of unanticipated events.
Contacts:
Crescendo Communications, LLCTel: (212) 671-1021Email:
LMFA@crescendo-ir.com
LM Funding America (NASDAQ:LMFA)
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