LM Funding America filed a registration statement for registering certain types of securities for a total proposed maximum aggregate offering price of $20 million.
The securities include units of up to $5 million, each consisting of one common share and one common warrant to purchase one common share. Also registered were common shares underlying common warrants included in the units of up to $5 million; pre-funded units of up to $5 million, where each pre-funded unit consists of one pre-funded warrant to buy one common share and one common warrant to buy one common share; and up to $5 million of common shares underlying common warrants included in the pre-funded units.
LM Funding America plans to use the proceeds from the offering to repay debt under the ESOUSA Holdings LLC note, and to pay the $200,000 commitment fee pursuant to its common stock purchase agreement. The company plans to use the remaining proceeds for general corporate purposes, including working capital.
Maxim Group LLC is serving as underwriter for the offering.