LM Funding America, Inc. completed the acquisition of IIU, Inc. from Craven House Capital Plc for $3.6 million.
January 14, 2019
Share
LM Funding America, Inc. (NasdaqCM:LMFA) entered into a non-binding letter of Intent to acquire IIU, Inc. from Craven House Capital Plc (AIM:CRV) for $3.6 million on December 18, 2018. Pursuant to the transaction, the purchase price shall be payable by LM Funding cancelling of IIU's promissory note held by it in the principal amount of $1.5 million and the issuance of Buy LM Funding's senior convertible promissory note in an initial principal amount of $3.58 million. For the year ended December 31, 2017, IIU reported an adjusted pre-tax income of approximately $0.5 million. The transaction is subject to consummation of legal and business due diligence investigation and satisfaction by LM Funding America, definitive documentation, approval of LM Funding America shareholders for issuing restricted common shares in payment of the convertible note, approval of officer-directors of LM Funding America and continued compliance by LM Funding America of all NASDAQ listing requirements. LM Funding America shall have received a fairness opinion from an investment banking firm in form acceptable to its board of directors. The transaction is expected to be completed by January 1, 2019. Matt Davis and Mark Brady of SPARK Advisory Partners Limited acted as a financial advisor to Craven House Capital Plc.
LM Funding America, Inc. (NasdaqCM:LMFA) completed the acquisition of IIU, Inc. from Craven House Capital Plc (AIM:CRV) for $3.6 million on January 15, 2019. LM Funding America signed an agreement to acquire IIU, Inc. from Craven House Capital Plc on January 15, 2019. The note is payable at Craven's option, subject to LM Funding America shareholder approval, in common stock of LM Funding America at a conversion price of $2.41 per share at any time on or after the first meeting of shareholders of LM Funding America to occur in 2019. In the event that the entire principal is converted to shares, this will represent approximately 1.5 million new common shares in LM Funding America. Mark Pajak, President and Chairman of IIU, joined LM Funding America as its Chief Operating Officer. The transaction was approved by the Board of Directors on January 15, 2019 following a legal and business due diligence review and receipt of a fairness opinion. The acquisition is expected to be accretive to earnings in 2019.
LM Funding America, Inc. together with its subsidiaries, is a cryptocurrency mining and technology-based specialty finance company. Its segments include Specialty Finance and Mining Operations. It offers funding to nonprofit community associations (Associations) primarily located in the state of Florida. It provides incorporated nonprofit community associations. Its original product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. In addition to its original product offering, the Company also purchase accounts on varying terms to suit each Associationâs financial needs, including under its New Neighbor Guaranty program. Under New Neighbor Guaranty program, an Association assigns substantially all of its outstanding indebtedness and accruals on its delinquent units to the Company in exchange for payment of monthly dues on each delinquent unit.
LM FUNDING AMERICA, INC. 
