LM Funding Announces 1-for-6 Reverse Stock Split to Ensure Compliance with Nasdaq Continued Listing Requirements and to Attract a Broader Audience of Investors
08 Marzo 2024 - 2:30PM
LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or
"LMFA"), a cryptocurrency mining and technology-based
specialty finance company, today announced a 1-for-6 reverse stock
split of its outstanding common stock, effective at 12:01 a.m.
Eastern time on March 12, 2024. Beginning March 12, 2024, LM
Funding’s common stock will trade on a split-adjusted basis.
Bruce M. Rodgers, Chairman and CEO of LM Funding, stated, "We
believe that our business fundamentals are currently strong and
that we continue to make good progress, as evidenced by our 1700%
year-over-year revenue growth in the third quarter of 2023.
Notably, as previously reported, the stockholders’ equity of LM
Funding was $35.9 million, or $2.45 per share (or $14.70 per share
after giving effect to the reverse split announced today), as of
September 30, 2023, and yet our current share price remains below
the Nasdaq minimum bid price requirement of $1.00. We believe this
share consolidation will not only ensure we meet the continued
listing requirements, but also help us to attract a broader
universe of investors, including institutional investors and retail
brokers that encounter share price restrictions. Importantly, the
pro-rata ownership of each shareholder will remain unchanged as a
result of the reverse split, and we believe this share
consolidation will tighten our public float and enhance our capital
structure as we continue to execute on our business model.”
At LM Funding’s Annual Meeting of Shareholders (the “Annual
Meeting”) held on November 9, 2023, the Company’s shareholders
approved a proposal to amend the Company’s Certificate of
Incorporation to effect a reverse stock split of its common stock
at a ratio within the range of one-for-two (1:2) to one-for-ten
(1:10), as determined by the Company’s Board of Directors. On
February 23, 2024, the Board of Directors adopted a resolution
approving and authorizing a 1-for-6 reverse split, and on March 7,
2024, LM Funding filed a Certificate of Amendment to its
Certificate of Incorporation to effect the reverse stock split
effective as of March 12, 2024. There will be no change to
the total number of authorized shares of LM Funding Common Stock as
set forth in the Certificate of Incorporation of the Company, as
amended.
LM Funding’s shares of common stock will continue to trade on
the NASDAQ under the symbol “LMFA.” The new CUSIP number for the
Company’s common stock post reverse stock split is 502074503.
Upon the effectiveness of the reverse stock split, every 6
shares of LM Funding’s issued and outstanding common stock will
automatically be converted into one share of common stock. No
fractional shares will be issued. Any fraction of a share of common
stock that would be created as a result of the reverse stock split
be rounded up to the next whole share.
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
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 our Bitcoin mining machines and our related ability to purchase
power at reasonable prices, the ability to finance and grow our
cryptocurrency mining operations, our ability to acquire new
accounts in our specialty finance business at appropriate prices,
the potential need for additional capital in the future, changes in
governmental regulations that affect our 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 our business, financial condition, and
results of operations.
Company Contact:Crescendo Communications,
LLCTel: (212) 671-1021Email: LMFA@crescendo-ir.com
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