Craven House Capital PLC Potential sale of subsidiary (1554L)
December 20 2018 - 8:25AM
UK Regulatory
TIDMCRV
RNS Number : 1554L
Craven House Capital PLC
20 December 2018
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Craven House Capital plc
("Craven House" or the "Company")
Potential sale of subsidiary to LM Funding America Inc.
Further to an announcement made today by LM Funding America Inc.
("LMFA"), Craven House confirms that it has entered into a
non-binding Letter of Intent ("LOI") to sell its wholly owned
subsidiary, IIU Inc., (a medical insurance broker) to LMFA.
Under the terms of the LOI, LMFA will acquire 100% of the
outstanding stock of IIU from Craven House for a total purchase
price of approximately $6 million. The purchase price will consist
of the cancellation by LMFA of all principal and accrued interest
of a Promissory Note issued to LMFA for principal indebtedness of
$1.5 million. In addition, LMFA will issue to Craven a Convertible
Promissory Note ("Convertible Note") for the balance of the
purchase price of approximately $4.5 million. The Convertible Note
shall bear simple interest at 3% per annum. The Convertible Note
shall be due and payable upon demand at the earlier of (i) August
31, 2019 or (ii) thirty days after the first meeting of the
shareholders of LMFA to occur in 2019. The note is payable at
Craven's option in cash or, subject to shareholder approval, common
stock of LM Funding at a conversion price of $2.41 per share.
This transaction therefore provides Craven with the option to
significantly increase its shareholding in LMFA following the
previously announced acquisition of 640,000 shares in LMFA in
November by way of participation in a public offering in which LMFA
successfully raised total gross proceeds of $6 million.
Ends
For further information please contact:
Craven House Capital Plc Tel: 0203 286 8130
Mark Pajak
www.Cravenhousecapital.com
SI Capital Tel: 01483 413500
Broker
Nick Emerson
www.sicapital.co.uk
SPARK Advisory Partners Limited Tel: 0203 368 3550
Nominated Adviser
Matt Davis/Mark Brady
www.Sparkadvisorypartners.com
About Craven House Capital:
The Company's Investing Policy is to invest in or acquire a
portfolio of companies, partnerships, joint ventures, businesses or
other assets globally in any geographic jurisdiction. The company
will invest in both developed and developing markets providing long
term patient capital and is often involved in special situations,
restructuring, expansion and turn around investments in crisis and
transitioning economies.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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