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Summary
- Stocks of LM Funding America (NASDAQ:LMFA, LMFA:US) shot up by over 177 per cent on Friday.
- The surge came following the news of its indirect subsidiary LMF Acquisition Opportunities is going public.
- LMF Acquisition Opportunities, a blank check company, plans to raise up to US$ 75 million from an initial public offering (IPO) of 7.5 million units.
Stocks of LM Funding America (NASDAQ:LMFA, LMFA:US) shot up by over 177 per cent in Friday’s trading after the company announced that its indirect subsidiary LMF Acquisition Opportunities is going public.
LM Funding America is a specialty finance company that offers funding to Florida-based non-profit community associations. LMF Acquisition Opportunities, on the other hand, is a special public acquisition corporation (SPAC) that plans to look for potentials business mergers in the financial service sector, especially the fintech industry, following its public listing.
The SPAC is being directly sponsored by LM Funding America’s affiliate, LMFAO Sponsor LLC, a limited liability firm in Florida.
LMF Acquisition Opportunities IPO
The blank check company plans to raise up to US$ 75 million from an initial public offering (IPO) of 7.5 million units, which are set to be priced at US$ 10 apiece.
Each of these units comprises of a common stock of the black check company and one redeemable warrant, as per the SEC filing.
LMFAO Sponsor LLC will be buying at least 4.5 million warrants at a price of US$ 1 apiece, which bring the total purchase price to US$ 4.5 million.
©Kalkine Group 2021
As per the proposed offering deal, LMFAO Sponsor is set to own about 20 per cent of all the blank check firm's issued and outstanding common stock following the IPO.
The SPAC, which was founded just last year, is seeking a public listing on the Nasdaq exchange.
Its team of underwriters are being represented by New York-based full-service investment firm Maxim Group LLC.
LMF Acquisition Opportunities plans to list its units under the symbol of ‘LMAOU’. Once its common stocks and warrants begin trading separately, the former will trade on the Nasdaq under the ticker of ‘LMAO’, while the latter goes as ‘LMAOW’.
The SPAC is headed by Bruce Rodgers, who has been the chief executive officer (CEO) and chairperson of LM Funding America since 2015. Rodgers also heads LMFAO Sponsor LLC.
