LM Funding America, Inc. (NASDAQ: LMFA) announced a registered direct offering of 1,822,535 shares of common stock and 7,332,395 pre-funded warrants.
The offering includes warrants to purchase up to 9,154,930 shares of common stock at an effective price of $0.71 per share.
Gross proceeds from the offering are estimated to be $6.5 million before expenses.
Offering Details
1,822,535 shares of common stock and 7,332,395 pre-funded warrants offered at an effective price of $0.71 per share.
Warrant Terms
Warrants have an exercise price of $0.71, exercisable upon approval, and expire after five years.
Extended Warrant Terms
Agreement to reduce exercise price on outstanding warrants to $0.87 and extend term to five years.
- LM Funding America aims to raise approximately $6.5 million through the registered direct offering.
- The offering includes a combination of common stock shares and pre-funded warrants, enhancing capital raising potential for the company.
LM Funding America's pricing of the registered direct offering signifies a strategic move to raise capital effectively for future growth initiatives. The agreement with institutional investors and the offering structure demonstrate confidence in the company's prospects.