LM Funding Completes Acquisition of Global Medical Insurance Product Company, IIU, Inc.
January 17 2019 - 8:00AM
LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or
the “Company”), a technology-based specialty finance
company, today announced it has completed the acquisition of all of
the outstanding stock of IIU, Inc. (“IIU”), pursuant to definitive
agreements formalizing the Letter of Intent the Company entered
into on December 20, 2018. The transaction was approved by the
Board of Directors on January 15, 2019 following a legal and
business due diligence review and receipt of a fairness opinion.
Based in the metropolitan Washington DC area,
IIU, through its U.S. subsidiary, sells global medical insurance
products for international travelers, specializing in policies
covering high-risk destinations, emerging markets and foreign
travelers coming to the United States. All policies are fully
underwritten with no claim risk remaining with IIU. Per IIU’s
unaudited financial statements, they generated approximately
$800,000 in revenues and $500,000 in pro-forma EBITDA in fiscal
years 2017 and 2018. The acquisition is expected to be accretive to
earnings in fiscal year 2019, following new customer enrollments
that will take effect in 2019.
LM Funding acquired 100% of the outstanding
stock of IIU from Craven House Capital North America, LLC, for a
total purchase price of approximately $5.1 million. The purchase
will result in LM Funding converting the $1.5 million note
receivable from IIU into IIU shares and issuing a secured
convertible note that after shareholder approval may be converted
into approximately 1.5 million shares to the shareholders of
IIU.
Mark Pajak, Chief Executive Officer of IIU, is
expected to assume a role with LM Funding to help lead the IIU
integration and provide strategic insight for future growth
opportunities.
LM Funding’s CEO Bruce Rodgers said, “We are
excited to complete this acquisition, which is expected to be
accretive to earnings in 2019, as we merge IIU operations into the
Company. We anticipate evaluating additional growth investments
that are accretive to earnings.”
About LM Funding America:LM
Funding America, Inc., together with its subsidiaries, is a
technology-based specialty finance company that provides funding to
nonprofit community associations (Associations) primarily located
in the state of Florida, as well as in the states of Washington,
Colorado and Illinois. The company offers funding to Associations
by purchasing a certain portion of the associations' rights to
delinquent accounts that are selected by the Associations arising
from unpaid Association assessments. The company is also involved
in the business of purchasing delinquent accounts on various terms
tailored to suit each Association's financial needs, including
under the company’s New Neighbor Guaranty™ program.
Forward-Looking Statements:
This press release may contain forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,”
and “project” and other similar words and expressions are intended
to signify forward-looking statements. Forward-looking statements
are not guarantees of future results and conditions but rather are
subject to various risks and uncertainties. Some of these risks and
uncertainties are identified in the company's most recent Annual
Report on Form 10-K and its other filings with the SEC, which are
available at www.sec.gov. The occurrence of any of these risks and
uncertainties could have a material adverse effect on the company's
business, financial condition, and results of operations.
Company
Contact:Bruce Rodgers, Chairman and CEOLM Funding America,
Inc.Tel (813) 222-8996investors@lmfunding.com |
Investor
Contacts:Valter Pinto / Scott EcksteinKCSA Strategic
Communications Tel (212) 896-1254 / (212) 896-1210valter@kcsa.com /
seckstein@kcsa.com |
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