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LMFA Stock: 10 Things to Know About the LM Funding America SPAC News
LM Funding America has filed to launch a fintech-focused SPAC. Here's what you should know.
By Sarah Smith, InvestorPlace Web Content Producer Jan 8, 2021, 3:53 pm EST
Editors note: This article was corrected on Jan. 11 to correct information about the size of the initial public offering.
LM Funding America (NASDAQ:LMFA) typically flies under the radar, but thanks to some SPAC merger news, LMFA stock is up nearly 200% on Friday. So what do investors need to know about the company? And why are LMFA shares soaring?
To start, investors should know that LM Funding America is a specialty financing company that helps fund non-profit community associations. Importantly, LMFA stock does not actually represent a blank-check company. Instead, LM Funding America announced on Friday that it is sponsoring a SPAC through one of its subsidiaries.
With that in mind, here is what you need to know about LM Funding America and LMFA stock:
LM Funding America calls Tampa, Florida its home.
It primarily operates in Florida, although it also has operations in Washington, Colorado and Illinois.
In those states, LM Funding purchases the rights to delinquent accounts, providing funding to community associations in return.
Essentially, LM Funding America steps in to help funding community associations like condominiums and cover attorney fees in situations of owner delinquency.
Today, LM Funding America filed an S-1 with the U.S. Securities and Exchange Commission to launch its own blank-check company.
LMA Acquisitions will start trading on the Nasdaq Exchange as a result.
Importantly, the new SPAC plans to target companies in the financial services and financial technology sector.
Once LMA Acquisitions starts trading, it will use the ticker LMAO.
The company plans to raise $75 million through offering 7.5 million units at $10 each.
Each of these units contains one share of common stock and one warrant that entitles the holder to purchase a share of common stock at $11.50.
Why LMFA Stock Is Soaring
Beyond the broad enthusiasm in the SPAC space, it is not entirely clear why LMFA stock is soaring on Friday. However, one potential answer lies in the target of LMA Acquisition.
Importantly, the soon-to-be-public blank-check company plans to focus on fintech. Just yesterday, Chamath Palihapitiya announced that Social Capital Hedosophia V (NYSE:IPOE) would take fintech SoFi public. As investors processed what that meant, and particularly the potential within the fintech space, IPOE stock has been on fire. As Palihapitiya outlines, legacy banks have been on their way out since the financial crisis. Now, fintech startups are the future of finance, making deals like the SoFi SPAC merger huge.
For investors today, that means LMFA stock may be rising high on similar enthusiasm. Keep a close eye on this SPAC merger news.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Patiently waiting for some tremendous news. Gathering steam and shares. :).
LMFA completed the registration to go public as a spac, currently $1.75.
1.1.1. Purchase of Firm Units. On the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, the Company agrees to issue and sell, severally and not jointly, to the several Underwriters, an aggregate of 7,500,000 units (the “Firm Units”) of the Company at a purchase price (net of discounts and commissions, including the Deferred Underwriting Commission described in Section 1.3 below) of $9.45 per Firm Unit, subject to certain adjustments set forth in Section 1.3 below. The Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm Units set forth opposite their respective names on Schedule A attached hereto and made a part hereof at a purchase price (net of discounts and commissions, including the Deferred Underwriting Commission described in Section 1.3 below) of $9.45 per Firm Unit. The Firm Units (and the Option Units (as hereinafter defined), if any) are to be offered initially to the public (the “Offering”) at the offering price of $10.00 per Firm Unit. Each Firm Unit consists of one share of Class A common stock of the Company, par value $0.0001 (“Class A Common Stock”), and one redeemable warrant (“Warrant(s)”) with each Warrant entitling the holder thereof to purchase one share of Class A Common Stock. The Class A Common Stock and Warrants included in the Firm Units will not be separately transferable until the 52nd Business Day after the Effective Date (as defined below) or the announcement by the Company of the Representative’s decision to allow earlier trading, subject, however, to the Company filing a Current Report on Form 8-K (“Form 8-K”) with the Commission (as defined below) containing an audited balanced sheet reflecting the Company’s receipt of the gross proceeds of the Offering and issuing a press release announcing when such separate trading will begin. In no event will the Company allow separate trading until (i) the preparation of an audited balance sheet of the Company reflecting receipt by the Company of the proceeds of the Offering and the filing of such audited balance sheet with the Commission (as herein defined) on a Form 8-K or similar form by the Company which includes such balance sheet and (ii) the issuance of a press release announcing when such separate trading shall begin. Each Warrant entitles the holder thereof to purchase one share of Class A Common Stock at a price of $11.50 per full share during the period commencing on the later of (a) 30 days after the completion of an initial Business Combination (as defined below), and (b) 12 months from the Closing Date (as defined below), and terminating on the five year anniversary of the closing of the Company’s initial Business Combination.
LMFA finished the filings to register as a SPAC. Could be offered as early as Monday. Currently $1.75
1.1.1. Purchase of Firm Units. On the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, the Company agrees to issue and sell, severally and not jointly, to the several Underwriters, an aggregate of 7,500,000 units (the “Firm Units”) of the Company at a purchase price (net of discounts and commissions, including the Deferred Underwriting Commission described in Section 1.3 below) of $9.45 per Firm Unit, subject to certain adjustments set forth in Section 1.3 below. The Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm Units set forth opposite their respective names on Schedule A attached hereto and made a part hereof at a purchase price (net of discounts and commissions, including the Deferred Underwriting Commission described in Section 1.3 below) of $9.45 per Firm Unit. The Firm Units (and the Option Units (as hereinafter defined), if any) are to be offered initially to the public (the “Offering”) at the offering price of $10.00 per Firm Unit. Each Firm Unit consists of one share of Class A common stock of the Company, par value $0.0001 (“Class A Common Stock”), and one redeemable warrant (“Warrant(s)”) with each Warrant entitling the holder thereof to purchase one share of Class A Common Stock. The Class A Common Stock and Warrants included in the Firm Units will not be separately transferable until the 52nd Business Day after the Effective Date (as defined below) or the announcement by the Company of the Representative’s decision to allow earlier trading, subject, however, to the Company filing a Current Report on Form 8-K (“Form 8-K”) with the Commission (as defined below) containing an audited balanced sheet reflecting the Company’s receipt of the gross proceeds of the Offering and issuing a press release announcing when such separate trading will begin. In no event will the Company allow separate trading until (i) the preparation of an audited balance sheet of the Company reflecting receipt by the Company of the proceeds of the Offering and the filing of such audited balance sheet with the Commission (as herein defined) on a Form 8-K or similar form by the Company which includes such balance sheet and (ii) the issuance of a press release announcing when such separate trading shall begin. Each Warrant entitles the holder thereof to purchase one share of Class A Common Stock at a price of $11.50 per full share during the period commencing on the later of (a) 30 days after the completion of an initial Business Combination (as defined below), and (b) 12 months from the Closing Date (as defined below), and terminating on the five year anniversary of the closing of the Company’s initial Business Combination.
1.1.1. Purchase of Firm Units. On the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, the Company agrees to issue and sell, severally and not jointly, to the several Underwriters, an aggregate of 7,500,000 units (the “Firm Units”) of the Company at a purchase price (net of discounts and commissions, including the Deferred Underwriting Commission described in Section 1.3 below) of $9.45 per Firm Unit, subject to certain adjustments set forth in Section 1.3 below. The Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm Units set forth opposite their respective names on Schedule A attached hereto and made a part hereof at a purchase price (net of discounts and commissions, including the Deferred Underwriting Commission described in Section 1.3 below) of $9.45 per Firm Unit. The Firm Units (and the Option Units (as hereinafter defined), if any) are to be offered initially to the public (the “Offering”) at the offering price of $10.00 per Firm Unit. Each Firm Unit consists of one share of Class A common stock of the Company, par value $0.0001 (“Class A Common Stock”), and one redeemable warrant (“Warrant(s)”) with each Warrant entitling the holder thereof to purchase one share of Class A Common Stock. The Class A Common Stock and Warrants included in the Firm Units will not be separately transferable until the 52nd Business Day after the Effective Date (as defined below) or the announcement by the Company of the Representative’s decision to allow earlier trading, subject, however, to the Company filing a Current Report on Form 8-K (“Form 8-K”) with the Commission (as defined below) containing an audited balanced sheet reflecting the Company’s receipt of the gross proceeds of the Offering and issuing a press release announcing when such separate trading will begin. In no event will the Company allow separate trading until (i) the preparation of an audited balance sheet of the Company reflecting receipt by the Company of the proceeds of the Offering and the filing of such audited balance sheet with the Commission (as herein defined) on a Form 8-K or similar form by the Company which includes such balance sheet and (ii) the issuance of a press release announcing when such separate trading shall begin. Each Warrant entitles the holder thereof to purchase one share of Class A Common Stock at a price of $11.50 per full share during the period commencing on the later of (a) 30 days after the completion of an initial Business Combination (as defined below), and (b) 12 months from the Closing Date (as defined below), and terminating on the five year anniversary of the closing of the Company’s initial Business Combination.
I just read the filing and it’s blank in this filing. But definitely states it’s funded. Pretty exciting.
I imagine they have to get all this filed and legit before they can name what company. Should know soon enough. Maybe Monday?
https://www.sec.gov/Archives/edgar/data/1831868/000156459021001426/lmao-ex11_306.htm
Don’t forget Spotify and casinos for online, on and on...
Cramer on CNBC just endorsed BFT. No stopping it now...
BFT merging with Paysafe will be at least a 3x. 5x for those that were in early enough.
What’s the terms on those? Threshold and duration?
Filing today showed they closed the the previous company shares. Progress.
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001640384&owner=include&count=40
Rumors are circulating on Twitter that Social Capital Hedosophia IV (NYSE: IPOD) could be targeting Autogrid, an energy grid software company.
I like your thinking, and I just looked at the volume that brought this 'down' and it was very low. Only 8M today with an average 10 day moving avg of 50mil. Calm before the storm?... Might have to add a few more if it drops anymore. There were some big buys at the $1.78 range today. Watched one that was 35000 managed to get filled eventually. Shares may be thinning out?
Maybe. And without some clarification on what the share structure and price could be I think this drifts lower. If this is really worth $10 a share why so low now?
I will just leave in there until the cows come home. Of course the cows are now soy meat but that’s what happens after 15 years. Ha. Good to see I’m not the only one still interested in seeing this through.
Totally agree. And also in IPOF. He seems to be hitting on all cylinders. 2021 is going to be huge. BFT feels like an opportunity to be in at ground like if we were first investing in Paypal. As the other states adopt betting and having Colorado and others approve this, it’s a walk for the rest to accept this!
Wow did that bounce in a hurry and big volume.
Interesting read and I learned that Paysafe processes Draftkings payments and many many others. Huge potential and existing base worldwide.
https://www.paysafe.com/fileadmin/content/pdf/All_the_ways_players_pay.pdf
Essentially this will uplist at $10 correct or am I misreading this somehow?
He seems to be following this which is good. It’ll get even more exposure when there is a date! Exciting
Nice timing! Congrats, This is on deck for the next big announcement!!
Well it looks like there may be an opportunity to get in lower as the country processes the results of the elections. News will have this exploding up.
Social Capital Hedosophia Holdings Corp VI (NYSE: IPOF) is the sixth SPAC in a series from Chamath Palihapitiya. Each of the three newest SPACs from Palihapitiya has the same management team with one added member for each team. The extra member for IPOF is Richard Costolo, the former CEO of Twitter Inc (NYSE: TWTR). This SPAC raised over $1 billion and could land the potentially largest deal for Palihapitiya. The SPAC could also see strong interest if any of the other Palihapitiya SPACs close or announce deals.
(From Ameritrade).
Let’s see what 2020 brings. Best of luck!
Nice article and find! This looks to be about the size of the deals Foley likes to work with. Thanks for sharing
Foley Trasimene Acquisition Corp:
Website:
https://www.foleytrasimene.com/
Shares Outstanding: 129.4M
% Held by Institutions 61.89% 12/30/2020
Executive Team:
William P. Foley, II - Founder and Chairman
Richard N. Massey - Chief Executive Officer
Bryan Coy - Chief Financial Officer
David W. Ducommun - Corporate Finance
Michael L. Gravelle - General Counsel and Corporate Secretary
Company Details
Social Capital Hedosophia Holdings Corp VI. Social Capital Hedosophia Holdings Corp. VI is a blank check company.
The Company is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
The Company intends to focus on businesses operating in the technology industries.
Shares Outstanding 143.8M
Institutional Ownership --%
Market Cap 1.8B
Last Stock Split None None
Social Capital Hedosophia Holdings Corp VI: The sixth SPAC from Palihapitiya raised $1 billion.
https://sec.report/CIK/0001818873
The extra team member on this SPAC is Richard Costolo, the former CEO of Twitter Inc (NYSE: TWTR). Costolo led Twitter from 2010 to 2015. He was also the founder of FeedBurner, which was acquired by Alphabet Inc(NASDAQ: GOOG) (NASDAQ: GOOGL) unit Google in 2007.
Nice!
I’ve not heard they are actually looking to dilute anything. Issued and outstanding is 160ish mil currently
Disagree, that would’ve put the authorized share count at 1 billion. Big time dilution and share decrease of value. @400mil, that’s a way lower float potential and should result in a higher price structure.
If they dilute from 160mil, that’d be negative, but if they issued ALL of the company stock tomorrow it’d only dilute down to about $1 from here. I can’t imagine that’s the plan.
Maybe they are going to get bought thus the authorized share count to 400m?!! Total speculation on that one...
I still read that as a reduction of 100mil shares from 500 to 400.
Overall increases the authorized shares to the full allotment. (200 to 400) Currently they were almost fully diluted (162mil of the 200mil according to TDA) of the previously authorized shares.
End of the day that’s a 20% decrease of total shares.
“The Proxy Amendment modified the proposed amendment of the Certificate of Incorporation by decreasing the proposed aggregate number of shares of Common Stock that the Company would be authorized to issue from 500,000,000 shares to 400,000,000 shares.
As amended, the proposed number of authorized shares represents an increase of 200,000,000 shares of Common Stock over the 200,000,000 shares currently authorized in the Certificate of Incorporation.”
Amazing when you see all these countries to choose from when you go to the website.
https://www.paysafecard.com/en-gb/country-selection/
https://www.bharatbiotech.com/covaxin.html
Nice read from their website.
Thanks for sharing. Going to be a good new year.
This feels like a good sign. Up nicely on no news. Somebody has news. :). Merry Christmas!
Ameritrade says outstanding float at 163mil shares. This has traded nearly 10x the float in two days! Wow.
What’s the real valuation of this agreement? Spectacular run! .30 to $3.00. Been a while since I caught one of these but where does it top?
I have Ameritrade too, maybe they are not done finalizing it. Mine shows around 19$ and bouncing around.