The board of LM Funding America is seeking shareholder approval for a reverse stock split of the company's issued and outstanding common shares, at a ratio within the range of one-for-two to one-for-ten, as determined by the company's board.
The reason for the stock split, according to LM Funding America's board, is to comply with certain listing criteria for the company's stock to remain on the Nasdaq, among other things.
LM Funding America's board, in another proposal, urged shareholders to approve the issuance and sale by the company to ESOUSA Holdings LLC of more than 19.99% of its outstanding common stock.
In addition, LM Funding America's board urged shareholders to approve an increase in the company's number of authorized common shares to 30 million from 10 million.
According to the board, the increase in the number of common shares will enable the company to engage in capital raising transactions and other strategic transactions involving the issuance of equity securities.
LM Funding America's annual meeting of shareholders is expected to be held Aug. 30.