Business
LM Funding Announces Business Combination Agreement With Hanfor and Concurrent $1.25 Million Private Placement of Common Stock
TAMPA, FL / ACCESSWIRE / Mar 23, 2020 / LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or "LMFA"), a technology-based specialty finance company, today
About this update from Lm Funding America, Inc.
[{"type":"text","content":"TAMPA, FL / ACCESSWIRE / Mar 23, 2020 / LM Funding America, Inc. (NASDAQ:LMFA) (\"LM Funding\" or \"LMFA\"), a technology-based specialty finance company, today announced that it has entered into a Share Exchange Agreement to combine its business with the asset management businesses of Hanfor (Cayman) Limited (\"Hanfor\"), a Cayman company, which is owned by BZ Industrial Limited, a British Virgin Islands company (\"BZI\").After giving effect to the business combination, LMFA shareholders will own approximately 12 percent of the combined company's outstanding shares. BZI has also agreed to pay LMFA $1.25 million shortly after signing the Share Exchange Agreement for approximately 520,833 shares of LMFA common at $2.40 per share in a private placement.\"After a thorough review of LMFA's current operations and strategic alternatives, we selected the Hanfor business combination transaction as the best option for our shareholders,\" commented Bruce Rodgers, Chairman and Chief Executive Officer of LMFA. \"Combining with Hanfor will allow our shareholders to participate in ownership of an opportunistic global company with far greater potential.\"Mr. Hank Han, Chairman of Hanfor, will lead the combined company following the closing, which will have businesses in both China and the U.S. The transaction is expected to close during the second half of the year, pending approval by shareholders of each company and subject to other closing conditions, which include without limitation the delivery of final audited financial statements by Hanfor, the receipt of a fairness opinion by the LMFA board of directors, approval of the transaction by LMFA stockholders, and satisfaction of the combined company with the initial listing requirements of the NASDAQ Capital Market.\"I am excited about the transaction with LMFA since it provides unique growth opportunities both within China and the United States,\" stated Mr. Han. \"We have demonstrated steady growth within China over the past several years. Given our strong international capabilities, we believe we are well-positioned to take advantage of cross-border opportunities during these historic economic times.\"Hanfor is a fund manager in China that manages multiple classes of alternative assets with a focus on private equity. Hanfor currently has approximately 5.4 billion RMB (approximately $770 mi...