- The stock price of LM Funding America Inc (NASDAQ: LMFA) is trading at over 35% pre-market today. This is why it happened.
The stock price of blank check company LM Funding America Inc (NASDAQ: LMFA) is trading at over 35% pre-market today. Investors appear to be responding to fundamental news about the company such as the closing of an upsized IPO and news about Frank Silcox replacing Martin Traber from the board.
Silcox Replacing Traber On Board
On January 29, LM Funding America announced the resignation of Martin Traber from the Board of Directors and the election of Frank Silcox to the Board of Directors to complete Mr. Traber’s current term — which expires at the 2022 Annual Meeting of Shareholders. Traber left the board of LMFA in order to become a director of LMF Acquisition Opportunities, a specialty acquisition company sponsored by a subsidiary of LMFA. Silcox is returning as an independent director of LMFA after originally founding the Company and having served as the manager of LMFA’s predecessor and wholly-owned subsidiary, LM Funding, LLC, from inception in January 2008 until December 31, 2014.
“We believe LMFA is best served by Mr. Traber’s active participation on the board of LMAO, where we hope his contacts and experience will contribute to a successful merger transaction for our sponsored SPAC,” said Bruce M. Rodgers, chief executive officer of LMFA and LMAO.
Silcox and Rodgers are credited with conceiving and developing LM Funding’s business model and growing the business together prior to its IPO.
“We started LM Funding with very little capital which constrained our growth,” said Silcox. “I am excited to rejoin the company as a director to help re-envision the business model with the approximately $20 million in cash the LM Funding currently has on hand.”
Silcox will also replace Traber as an independent director on the LMFA Board’s compensation and nominating committees.
Closing Of $103.5 Million Upsized Initial Public Offering, Including Full Exercise of the Overallotment Option
On January 28, LMF Acquisition Opportunities, Inc. (NASDAQ:LMAOU) had announced the closing of its upsized initial public offering of 10.35 million units, which included the full exercise of the underwriters’ over-allotment option, at a price of $10 per unit, resulting in total gross proceeds of $103.5 million.
Each unit consisted of 1 share of Class A common stock and 1 redeemable warrant, each warrant entitling the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. And the company’s units commenced trading on the Nasdaq Capital Market on January 26, 2021, under the symbol “LMAOU.” Once the securities comprising the units begin separate trading, the Class A common stock and warrants are expected to be listed on Nasdaq with the symbols “LMAO” and “LMAOW,” respectively.
Of the proceeds received from the consummation of the initial public offering and simultaneous private placement of units, $105.57 million (or $10.20 per unit sold in the public offering) was placed in a trust.
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