TAMPA, FL - LM Funding America, Inc. (NASDAQ:LMFA), a company engaged in cryptocurrency mining and specialty finance, has declared a 1-for-6 reverse stock split of its common stock, which will be effective at the beginning of trading on March 12, 2024. The company's shares will continue to be listed on NASDAQ under the ticker LMFA, with a new CUSIP number 502074503 following the split.
This corporate action follows the approval from LM Funding's shareholders during the Annual Meeting on November 9, 2023, which granted the Board of Directors the authority to implement a reverse stock split at a ratio between 1:2 and 1:10. The Board of Directors subsequently determined the exact ratio to be 1:6 on February 23, 2024, and the company filed the necessary amendment to its Certificate of Incorporation on March 7, 2024.
Bruce M. Rodgers, the Chairman and CEO of LM Funding, commented on the reverse split as a strategic move to align the company's stock price with NASDAQ's minimum bid price requirement. He also mentioned the company's significant revenue growth and the belief that the reverse split would attract a wider range of investors, including institutional ones, and enhance the capital structure.
With the reverse split, every six existing shares of LM Funding's common stock will be combined into one new share. The total number of authorized shares will not change as a result of the split, and no fractional shares will be issued. Shareholders will receive a rounded-up whole share in lieu of any fractional shares that would otherwise have been created.
The company, which started its Bitcoin mining operations in September 2022, also provides funding to nonprofit community associations by purchasing a portion of the associations' rights to delinquent accounts. The reverse stock split is seen as a step to improve the company's financial structure while it continues to expand its operations in cryptocurrency mining and specialty finance.
This report is based on a press release statement from LM Funding America, Inc.
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