LM Funding Announces Share Consolidation
TAMPA, Fla., Oct. 15, 2018 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a technology-based specialty finance company offering unique funding solutions to community associations, today announced a consolidation (the “Consolidation”) of the issued and outstanding common shares of the Company (“Common Shares”) on a basis of one (1) post-Consolidation Common Share for every ten (10) pre-Consolidation Common Shares. Shares of the Company’s common stock will trade on a post-split basis October 16, 2018. The Company’s ticker symbol, LMFA, will remain unchanged.
The 6,253,189 Common Shares currently issued and outstanding will be reduced to approximately 625,318 Common Shares on a post-Consolidation basis. No fractional Common Shares will be issued pursuant to the Consolidation. Stockholders who otherwise would be entitled to receive a fractional share in connection with the Consolidation will receive a cash payment in lieu of such fractional share. The Company’s warrants that trade under the symbol LMFAW will not be consolidated, provided that the number of shares subject to each warrant and the exercise price per share will automatically be adjusted under the terms of the applicable warrant agreement as a result of the Consolidation.
LM Funding shareholders will receive instructions from the Company's transfer agent, Vstock Transfer LLC, as to procedures for exchanging existing stock certificates for new certificates or book-entry shares. The new CUSIP number for the Company's common stock following the Consolidation will be 502074 305.
Shareholders approved the Consolidation at the 2018 Annual Meeting of Shareholders on August 30, 2018, and subsequently LM Funding’s Board of Directors approved the implementation of the Consolidation and the ratio of 1-for-10.
About LM Funding America:
LM Funding America, Inc., together with its subsidiaries, is 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. The company offers funding to Associations by purchasing a certain portion of the associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty™ program.
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. 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. Some of these risks and uncertainties are identified in the company's filings with the SEC. 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.
Bruce Rodgers, Chairman and CEO
LM Funding America, Inc.
Tel (813) 222-8996
Valter Pinto / Scott Eckstein
KCSA Strategic Communications
Tel (212) 896-1254 / (212) 896-1210
firstname.lastname@example.org / email@example.com
Released October 15, 2018