There are now plenty of options for investors when it comes to innovative finance companies and one of those is LM Funding America Inc (NASDAQ:LMFA). It is a specialty finance company that is fundamentally dependent on innovative technology and in recent days, its stock has also performed quite strongly.
The stock was in focus among investors on Monday and managed to clock gains of 13% amidst heavy interest. As a matter of fact, the gains made by the stock yesterday took its gains for the past month to as much as 31%. The company, which is looking to move into the crypto space, made a key announcement yesterday and investors ought to take a closer look at it.
Yesterday, the company announced the pricing in relation to an underwritten public offering it will conduct. In that particular offering, the company will be offering a total of 6,315,780 shares of the LM Funding America common stock and in addition to that, warrants to pick up an additional 6,315,780 shares are also going to be offered.
The offering is going to be made in the form of a unit consisting of one share of the common stock and one warrant. The units in question are going to be offered for the price of $4.75 each. It goes without saying that it was a major announcement from the company and one that seems to have come as a source of optimism among many investors.
In this context, it is perhaps also necessary to point out that the warrants could be exercised immediately at a price of $5 a share of the LM Funding America common stock. The warrants are going to expire five years from the day of issuance.
Although the common shares and warrants are being combined into one unit, they could be separated immediately after the purchase is completed. The offering is expected to be closed today as long as the usual closing conditions are met. It is going to be interesting to see if the stock remains on the radars of investors today. It could be a good idea to keep an eye on LM Funding America today.