Craven House Capital PLC Completion of purchase of IIU, Inc. from LMFA (5171Z)
January 13 2020 - 2:00AM
UK Regulatory
TIDMCRV
RNS Number : 5171Z
Craven House Capital PLC
13 January 2020
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")
Completion of purchase of IIU, Inc. from LM Funding America
Inc.
The Company announces that Craven House Capital North America
LLC ("CRVNA" - a wholly owned subsidiary of the Company) has
completed the purchase of 100% of the outstanding share capital of
IIU Inc., ("IIU" - a medical insurance broker) from LM Funding
America Inc. ("LMFA").
CRVNA previously sold IIU to LMFA in January 2019 for a total
purchase price of approximately $5.1 million, $3.6m of which was
paid via the issuance by LMFA of a Convertible Promissory Note
("Convertible Note"). (As announced on 17 January
2019:https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/CRV/13938506.html)
In consideration for the purchase of IIU, CRVNA will cancel the
Convertible Note along with any principal and accrued interest
payments. IIU reported a loss for the 12 months to 31 December 2019
of $36,700 and net assets of $1.02m.
The Company has determined that, given the recent extension
granted to the Convertible Note and the delays experienced in LMFA
seeking shareholder approval to allow the Convertible Note to be
converted into shares in LMFA, it is in the best interests of
Craven shareholders to agree to the cancellation of the Convertible
Note and regain full ownership of IIU and its subsidiaries which
continue to trade successfully and profitably.
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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