Shares of LM Funding America, Inc. (NASDAQ: LMFA) skyrocketed on Friday after the firm disclosed that its indirect unity LMF Acquisition Opportunities, Inc. has filed a registration statement with SEC. Registration Statement is the document which a company must submitted with SEC before it plans for public offering of its units.
LMF Acquisition is searching for the firms in the financial services industry, including potentially the FinTech sector, and other related sectors. The firm is intending to offer the initial offering of up to $75 million, or up to $86.25 million. LMFAO Sponsor LLC is the direct owner of LMF Acquisition Opportunities, Inc.
Shares of LM Funding America, Inc. (NASDAQ: LMFA) rocketed 177.02% during the trading session of Friday. In the past 52-weeks of trading, this firm's share went from a low point around $0.30 to briefly over $4.89. Its shares moved up 610.00% from its 52-weeks low and moved down -56.44% from its 52-weeks high.
Looking at its profitability, it as return on equity, and assets is -95.90%, and -72.90%, respectively. Its Gross Margin is -7.70%. Turning our focus on its liquidity, it has a current ratio of 17.00 and a quick ratio is also 17.00. LM Funding America, Inc's market cap has remained high, hitting $33.70 million at the time of writing.
As per the deal of the planned public offering, LMFAO Sponsor would possess 20% of issued and outstanding common stock of LMF Acquisition upon the completion of the offering. LMF Acquisition will be administered by the management team of the firm. The Registration Statement which the firm has lodged with SEC has not been active yet. Seller or buyer will not be able to sell and buy securities until and unless the statement has been active.