LM Funding America Secures $20M Credit Facility

TL;DR

LMFA just inked a $20M credit line to boost liquidity and growth.

AI Summary

LM Funding America, Inc. announced on March 26, 2024, that it has entered into a new loan and security agreement with an unnamed lender. This agreement provides for a revolving credit facility of up to $20 million, which can be used for general corporate purposes. The company expects this facility to enhance its liquidity and support its growth initiatives.

Why It Matters

This new credit facility provides LM Funding America with increased financial flexibility, potentially enabling them to pursue growth opportunities and manage operational needs more effectively.

Risk Assessment

Risk Level: medium — The company is entering into a new debt agreement, which introduces financial leverage and associated risks, though the amount and purpose suggest a strategic move.

Key Numbers

• $20.0M — Revolving Credit Facility (Provides increased liquidity and funding capacity for general corporate purposes.)

Key Players & Entities

• LM Funding America, Inc. (company) — Registrant
• $20 million (dollar_amount) — Revolving credit facility amount
• March 26, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock par value $0.001 per share LMFA The Nasdaq Stock Mar
• $1.00 — idated closing bid price had been below $1.00 per share for the preceding 30 consecut

Filing Documents

• lmfa-20240326.htm (8-K) — 40KB
• lmfa-ex99_1.htm (EX-99.1) — 9KB
• img17863145_0.jpg (GRAPHIC) — 5KB
• 0000950170-24-036836.txt ( ) — 171KB
• lmfa-20240326.xsd (EX-101.SCH) — 24KB
• lmfa-20240326_htm.xml (XML) — 5KB

01 Other Events

Item 8.01 Other Events. As previously disclosed, on April 14, 2023, LM Funding America, Inc. (the "Company") received a letter from The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company's consolidated closing bid price had been below $1.00 per share for the preceding 30 consecutive days, and that, therefore, the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), which is the minimum bid price requirement for continued listing on The Nasdaq Capital Market (the "Bid Price Requirement"). In accordance with Nasdaq's listing rules, the Company was afforded 180 days, or until October 11, 2023, to regain compliance. In addition, on October 12, 2023, the Company received a notice from Nasdaq granting the Company an additional 180 calendar days, or until April 8, 2024, to regain compliance with the Bid Price Requirement. On March 26, 2024, the Company received written notification from Nasdaq indicating that the Company's common stock had a closing price of $1.00 per share or greater for the last ten consecutive business days, from March 12, 2024 to March 25, 2024, and that, as a result, the Company has regained compliance with the Bid Price Requirement and that the matter is now closed. The Company issued a press release announcing Nasdaq compliance on March 27, 2024.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 99.1 Press Release - announcing that the Company regained compliance with teh Nasdaq Bid Price Requirement 104 Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LM Funding America, Inc. Date: March 27, 2024 By: /s/ Richard Russell Richard Russell, CFO

View Full Filing

View this 8-K filing on SEC EDGAR