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TAMPA, Fla. – LM Funding America, Inc. (NASDAQ:LMFA), a cryptocurrency mining and specialty finance company, has declared a 6-to-1 reverse stock split of its common stock. The Company's shares will continue to be listed on NASDAQ under the ticker LMFA with the new CUSIP number 502074503 after the split.
This corporate action was approved by LM Funding's shareholders at the annual general meeting on November 9, 2023, and authorized the board of directors to implement a reverse stock split in the ratio of 1:2 to 1:10. This is what I received. Subsequently, the board of directors determined the correct ratio to be 1:6 on February 23, 2024, and the company filed the necessary amendments to its certificate of incorporation on March 7, 2024.
Bruce M. Rogers, Chairman and CEO of LM Funding, commented that the reverse stock split is a strategic move to align the company's stock price with Nasdaq's minimum bid price requirements. He also cited the company's strong earnings growth and the belief that the reverse stock split will attract a broader range of investors, including institutional investors, and strengthen the company's capital structure.
The reverse stock split will consolidate every six existing shares of LM Funding's common stock into one new share. There will be no change in the total number of issuable shares due to the split, and no fractional shares will be issued. Shareholders receive whole shares rounded up instead of fractional shares that would otherwise be created.
The company, which began mining operations in September 2022, also funds non-profit regional associations by purchasing a portion of the associations' rights to delinquent accounts. The reverse stock split is seen as a step for the company to improve its financial structure while continuing to expand its crypto mining and specialized finance businesses.
This report is based on a press release statement from LM Funding America, Inc.
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