LM Funding America Inc. (LMFA) shares surged 14.29% in after-hours on Thursday, July 29, 2021, and closed the daily trading at $4.80. in regular trading, LMFA’s stock lost 5.41%. LMFA shares have fallen 39.13% over the last 12 months, and they have moved up by 7.69% in the past week. Over the past three months, the stock has lost 27.59%, while over the past six months, it has shed 44.00%.
Let’s discuss its recent news and developments briefly.
Acquisition of 5.2% LMFA stock by Custodian Ventures LLC
On July 29, 2021, Custodian Ventures LLC filed a Schedule 13D announcing its acquisition of approximately 5.2% of the common stock outstanding of LM Funding America, Inc. (LMFA).
LMFA recent financial results
On May 14, 2021, LM Funding America, Inc. (LMFA) reported its financial results for the three months ended March 31, 2021.
Q1 2021 financial highlights
- LMFA reported revenue of $177 thousand in Q1 2021 compared to $341 thousand in Q1 2020.
- It suffered an operating loss of 1,728 thousand in Q1 2021 compared to a loss of $561 thousand in Q1 2020.
- In Q1 2021, net income was $$4.4 million, or $0.87 per basic common share compared to $0.55 million or $0.88 per basic common share in Q1 2020.
LMFA Reverse Stock Split
On May 06, 2021, LM Funding America, Inc (LMFA) announced a 1-for-5 reverse stock split of its outstanding common stock, which became effective at 12:01 a.m. Eastern time on May 7, 2021. LM Funding’s common stock started to trade on a split-adjusted basis on May 7, 2021.
Digital Assets Strategy
On April 26, 2021, LM Funding America, Inc (LMFA) announced plans to purchase up to $2 million in digital assets. The purchase of Bitcoin, Ether and other digital assets that are not securities is part of LMFA’s capital allocation strategy. This purchase represents approximately ten per cent of LMFA’s assets. In addition, LMFA is pursuing the development of transactional capabilities involving digital assets both organically and through potential acquisitions.
Separate Trading of Class A Common Stock and Warrants
On March 17, 2021, LMF Acquisition Opportunities, Inc (LMAOU) announced that, from March 18, 2021, holders of the units sold in the Company’s initial public offering elected to separately trade shares of the Company’s Class A common stock and warrants included in the units. Class A Common Stock and warrants that are separated will trade on the Nasdaq Capital Market under the symbols LMAO and LMAOW, respectively. Those units not separated will continue to trade on Nasdaq under the symbol LMAOU.
Conclusion
The recent 5.2% LMFA stock acquisition by Custodian Ventures LLC was the reason behind its surging in the after-markets on Thursday. it can continue to surge on Friday as well.
