LM Funding America Inc has entered into a master exchange agreement with a New York-based family office.
Under the agreement, the investor agreed to exchange two promissory notes payable by the company and previously acquired by the investor for a combination of shares of the LM Funding's common stock and warrants to acquire common stock.
The first promissory note's principal amount is $2.8 million, and the second note has the principal amount of $1.7 million.
The first note was exchanged for an aggregate of 170,000 common shares and initial prefunded warrants to purchase an aggregate of 924,595 additional common shares, subject to the previously disclosed true-up provisions in the agreement.
LM Funding America also disclosed that on Dec. 22, 2017, that the second note was exchanged for an aggregate of 200,000 common shares and initial prefunded warrants to purchase an aggregate of 1,270,140 additional common shares, subject to the true-up provisions in the agreement.
As of Dec. 26, 2017, all exchanges, true-up issuances, and warrant exercises contemplated by the agreement had been completed, with an aggregate of 2,953,189 common shares being issued under the agreement to the New York-based family office.
