LM Funding America is consolidating its issued and outstanding common shares on a basis of 1 post-consolidation common share for every 10 pre-consolidation common shares.
The 6,253,189 common shares currently issued and outstanding will be reduced to about 625,318 common shares on a post-consolidation basis. The common shares will trade on a post-split basis Oct. 16, while the company's ticker symbol LMFA will remain unchanged.
No fractional common shares will be issued pursuant to the consolidation, and shareholders who otherwise would be entitled to receive a fractional share in connection with the consolidation will get a cash payment in lieu of such fractional share.
In addition, LM Funding's warrants that trade under the symbol LMFAW will not be consolidated, given that the number of shares subject to each warrant and the exercise price per share will automatically be adjusted under the terms of the applicable warrant agreement as a result of the common shares consolidation.
Vstock Transfer LLC, LM Funding's transfer agent, will give instructions to LM Funding's shareholders regarding procedures for exchanging existing stock certificates for new certificates or book-entry shares.
LM Funding's shareholders, during the company's annual shareholder meeting on Aug. 30, approved the consolidation. Subsequently, LM Funding's board approved the implementation of the consolidation and the ratio of 1-for-10.