- The stock price of LM Funding America Inc (NASDAQ: LMFA) is trading at over 80% pre-market today. Why it happened.
The stock price of LM Funding America Inc (NASDAQ: LMFA) is trading at over 80% pre-market. One of the main triggers for the stock price increase has to do with the company announcing 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.
And each unit consisted of one share of Class A common stock and one 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. The company’s units commenced trading on the Nasdaq Capital Market on January 26, 2021 under the symbol “LMAOU.” And once the securities comprising the units begin separate trading, the Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “LMAO” and “LMAOW,” respectively.
Out 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. And an audited balance sheet of the Company as of January 28, 2021, reflecting receipt of the proceeds upon consummation of the initial public offering and the private placement will be included as an exhibit to a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.
LM Acquisition Opportunities is a blank check company organized under the laws of Delaware formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. And while the Company may pursue an initial business combination target in any business, industry or geographical location, it intends to focus initially on transactions with companies and/or assets within the financial services industry, including potentially the financial technology sector and related sectors. The Company is led by CEO Bruce M. Rodgers and CFO Richard Russell. In addition to Rodgers and Russell, the company’s Board of Directors also includes Martin Traber, Bruce Bennett, and Craig Burson.
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