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LM Funding America, Inc. 8-K Amendment: Key Warrant Agreement Details

$LMFA
Form 8-K/A
Filed on: 2025-01-10
Source
LM Funding America, Inc. 8-K Amendment: Key Warrant Agreement Details

Here are the key points extracted from the financial report:

  1. Filing Information:
  • Company: LM Funding America, Inc.
  • SEC CIK: 0001640384
  • Filing Type: Amendment No. 1 to Current Report on Form 8-K
  • Original Filing Date: December 9, 2024
  • Amendment Filing Date: December 6, 2024
  1. Purpose of Amendment:
  • To add Item 1.01 (Entry into a Material Definitive Agreement) which was inadvertently omitted in the Original Form 8-K.
  • To correct the "Date of Report" to reflect the date of the earliest reported event (December 6, 2024).
  1. Material Agreement:
  • Agreement Date: December 8, 2024
  • Type of Agreement: Warrant Exercise Agreement with an existing accredited investor.
  • Warrant Details:
    • Existing Warrants: 1,736,370 shares originally issued on August 19, 2024, at an exercise price of $2.98 per share.
    • New Warrants: Issued in exchange for the exercise of Existing Warrants, allowing the purchase of 3,472,740 shares at an exercise price of $2.95 per share, expiring five years from the issuance date.
  • Beneficial Ownership Limitation: Investor cannot exceed 4.99% ownership of outstanding common stock, with an option to increase to 9.99%.
  1. Financial Impact:
  • Gross Proceeds from Existing Warrants: Approximately $5.1 million before fees and expenses.
  • Use of Proceeds: Intended for working capital and general corporate purposes.
  • Financial Advisor: Maxim Group LLC, receiving a fee of 6% of total proceeds from the exercise.
  1. Registration and Compliance:
  • The company will file a resale registration statement with the SEC within 30 days and aims for it to be declared effective within 60 days after the Warrant Exercise Agreement.
  1. Corporate Information:
  • Address: 1200 West Platt Street Suite 100, Tampa, FL 33606
  • Contact: 813-222-8996
  • Common Stock: Par value $0.001 per share, trading under the symbol LMFA on NASDAQ.

This summary captures the essential details and implications of the financial report for LM Funding America, Inc., highlighting the nature of the agreement and its financial significance.