LM Funding America, Inc. (LMFA), a specialty finance company, has surged a massive 9.33% in the current market after the company reported tremendous quarterly results for three and six month period of the fiscal year 2021 on Monday. As a result, LMFAstock currently stands at $5.03.
Quarterly and six month results
According to the reported results, the total net income of LMFA for three and six-month periods ended on 30th June stands at $11.1 million. The amount of cash increased to $22.2 million. Also, as of 6th August, the common shares outstanding were 5,414,296. LM Funding also said that during the first six months of 2021, it developed a digital asset security strategy to increase its business, and also, sponsored a special acquisition company, and closed a $103.5 million upsized IPO.
Acquisition of LMFA common stock
On 30th July, Custodian Ventures LLC, an investment fund, filed a Schedule 13D and announced that it was acquiring some 5.2% common stock outstanding of LM Funding. David E. Lazar, Chief Executive Officer of Custodian Ventures, said on the occasion that Custodian Ventures LLC invested in LMFA due to the Company’s stated intention to explore potential acquisitions, financing activities, and strategic transactions to maximize shareholder value.
LMFA Q1 financial results
In mid of May, LM Funding announced the quarterly results for the first quarter of the fiscal year 2021, which ended 31st March. According to those, the revenue generated during the quarter, the company generated revenue of $177,000, as compared to revenue of $341,000 during the equivalent period of 2020. The operating loss during the quarter stood at $1,728,000, as compared to an operating loss of $561,000 during the equivalent period of 2020. The net income during the quarter stood at $4.4 million, while the cash increased to $17.8 million, while it stood at $11.5 million on 31st of December 2020.
Reverse stock split
In early May, LM Funding America, Inc. (LMFA) announced a 1-for-5 reverse stock split of its outstanding common stock. During the annual shareholder meeting, the company decided to make amendments in the company’s certificate of incorporation. Afterward, the board of directors approved a 1-for-5 reverse split. Bruce M. Rodgers, Chairman, and CEO of LM Funding said on the occasion that the reverse stock split would make available an increased number of authorized but unissued shares to pursue potential acquisitions and additional financing activities.
Agreement with Borqs Technologies
In February, LM Funding announced to have entered into a master loan receivable Purchase and Assignment agreement with Borqs Technologies. Under the agreement, LMFA agreed to purchase about $18 million of loan receivables of Borqs Technologies. LM Funding completed its obligations to purchase $18.2 million of debt during a period from 7th January to 10th February 2021.
Replacement of director
In January, LM Funding announced to incorporate Frank Silcox as a member in the Board of directors in the place of Martin Traber, who resigned from the board. Silcox, who originally founded the company, returned back as an independent director. Also, he served as Manager of LMFA’s subsidiary LM Funding LLC.
Future of LMFA stock
LMFA stock seems to be on a rising curve in near future, based upon recent market performances and analysts’ estimates. This is evident from the fact that EPS for this year could grow by some 49.10%. The short-term investment could create issues due to market volatility, but long-term investment in LMFA stock could yield a positive outcome. So, potential investors should keep a close watch on LMFA stock.
