LM Funding America affiliate sponsors SPAC to be traded as "LMAO"

• LMF Acquisition Opportunities, a special purpose acquisition company ("SPAC"), files for an IPO of 7.5M units at $10 each to raise ~$75M.
• The SPAC intends to focus initially on a business combination with companies or assets in the financial services, including potentially the fintech sector, with an enterprise value of ~$250M-$500M.
• Shares in LM Funding America (NASDAQ:LMFA), an affiliate of LMFAO's sponsor, soar 160% after the filing.
• The units are expected to trade on the Nasdaq Capital Market under the symbol "LMAOU" consisting of class A common stock and warrants; once the components trade separately, the class A shares are expected to trade under the symbol "LMAO" and the warrants under "LMAOW".
• The sponsor, LMFAO Sponsor LLC, agrees to buy 4,598,000 warrants, or 5,048,000 if over-allotment option is exercised in full, at a price of $1.00 per warrant for almost $4.6M (or $5.0M with full over-allotment) in a private placement to occur at the same time as the IPO.
• Under the terms of the proposed offering, LMFAO Sponsor would own 20% of LMF Acquisition's issued and outstanding common stock after the offering.
• LMFAO Chairman and CEO Bruce Rodgers is also chairman, CEO and president of LMFA, a specialty finance company that provides funding to nonprofit community associations primarily located in Florida.
• Previously (Dec. 17, 2020): LM Funding bags more contracts with new associations.