LM Funding America Inc (LMFA)

[cjstocksup]

Nothing but good LMFA news. I love this part the warrants will be exercised at $11.50 per share. The 8K hit afterhours so next week should be a very green week ahead.
Item 1.01 Entry into a Material Definitive Agreement.



On January 28, 2021, LMF Acquisition Opportunities, Inc. (“LMF Acquisition”), a special purpose acquisition company organized by LM Funding America, Inc. (the “Company”), announced the closing of an initial public offering of units (“Units”). In the initial public offering, LMF Acquisition sold an aggregate of 10,350,000 Units at a price of $10.00 per unit, resulting in total gross proceeds of $103,500,000. Each Unit consisted of one share of Class A common stock and one redeemable warrant, with each warrant entitling the holder thereof to purchase one share of Class A common stock of LMF Acquisition at a price of $11.50 per share. LMFAO Sponsor, LLC (“Sponsor”), a subsidiary in which the Company owns approximately 70% of the equity and for which the Company is the sole manager, served as the sponsor for LMF Acquisition’s initial public offering. Sponsor was organized by, and its initial capital contribution was contributed by, the Company and the Company’s executive officers. The Company’s executive officers and LMF Acquisition’s directors collectively own an approximately 30% nonvoting equity interest in Sponsor, and LMF Acquisition will be managed by the Company’s management team.



In connection with the initial public offering of LMF Acquisition, Sponsor entered into a Private Placement Warrants Purchase Agreement with LMF Acquisition on January 25, 2021 (the “Warrants Purchase Agreement”). Pursuant to the Warrants Purchase Agreement, Sponsor purchased from LMF Acquisition, simultaneous with the closing of the initial public offering, an aggregate of 5,738,000 warrants at a price of $1.00 per warrant ($5,738,000 in the aggregate) in a private placement (the “Private Placement Warrants”). Each Private Placement Warrant is exercisable to purchase one share of LMF Acquisition’s Class A common stock at $11.50 per share. The purchase price for the Private Placement Warrants was funded by an intercompany loan by the Company to Sponsor. A copy of the Warrants Purchase Agreement is attached as Exhibit 10.4 to this Form 8-K and incorporated herein by this reference. The terms of the Private Placement Warrants are set forth in a Warrant Agreement, dated January 25, 2021 (the “Warrant Agreement”), a copy of which is attached as Exhibit 10.1 to this Form 8-K and incorporated herein by this reference.



In addition to the foregoing, Sponsor holds 2,587,500 shares of LMF Acquisition’s Class B common stock that it acquired for a purchase price of $25,000. The shares of Class B common stock will automatically convert into shares of Class A common stock at the time, if any, when LMF Acquisition completes an initial business combination, on a one-for-one basis, subject to certain adjustments. The Class B common stock represented approximately 20% of the outstanding common stock of LMF Acquisition immediately following the completion of LMF Acquisition’s initial public offering. In connection with such initial public offering, the Sponsor, LMF Acquisition, and Maxim Partners LLC entered into a Registration Rights Agreement, dated January 25, 2021 (the “Registration Rights Agreement”), pursuant to which Sponsor has certain rights to require LMF Acquisition to register the shares of Class A common stock into which the Class B common stock is convertible and for which the Private Placement Warrants are exercisable. A copy of the Registration Rights Agreement is attached as Exhibit 10.3 to this Form 8-K and incorporated herein by this reference.



Also in connection with LMF Acquisition’s initial public offering, Sponsor entered into a letter agreement, dated January 25, 2021, with LMF Acquisition and its officers and directors (the “Letter Agreement”). Pursuant to the Letter Agreement, Sponsor has agreed to, among other things, waive its redemption rights with respect to its shares of LMF Acquisition, vote its shares in favor of LMF Acquisition’s initial business combination, and comply with certain share lock-up and transfer restrictions. A copy of the Letter Agreement is attached as Exhibit 10.2 to this Form 8-K and incorporated herein by this reference.



The foregoing descriptions of the Warrants Purchase Agreement, Warrant Agreement, Registration Rights Agreement, and Letter Agreement are summary in nature and are qualified by reference to the full text of such agreements attached as exhibits to this Form 8-K.

https://ih.advfn.com/stock-market/NASDAQ/lm-funding-america-LMFA/stock-news/84207740/current-report-filing-8-k