LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or the "Company"), a technology-based specialty finance company offering unique funding solutions to community associations, today announced the pricing of an underwritten public offering of 10,000,000 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and warrants to purchase up to 10,000,000 shares of the Company's common stock. Each share of common stock and pre-funded warrant is being sold in a unit together with one common warrant to purchase one share of common stock at a price of $0.90 per unit.

The common warrants will be immediately exercisable at a price of $0.90 per share of common stock and will expire five years from the date of issuance. The shares of common stock or the pre-funded warrants, and the accompanying common warrants, can only be purchased together in the offering, but will be issued separately and will be immediately separable upon issuance. The offering is expected to close on or about August 18, 2020, subject to customary closing conditions.

Maxim Group, LLC is acting as sole book-running manager for the offering.

LM Funding also has granted to the underwriter a 45-day option to purchase up to an additional 1,200,000 shares of common stock and/or common warrants to purchase up to 1,200,000 shares of common stock, at the public offering price less discounts and commissions.

The gross proceeds from this offering are expected to be approximately $9.0 million before deducting underwriting discounts and commissions and other expenses payable by the Company. LM Funding intends to use the net proceeds from this offering for general corporate purposes, including working capital.

The offering is being conducted pursuant to the Company's registration statement on Form S-1 (File No. 333-240015) previously filed with and subsequently declared effective by the Securities and Exchange Commission ("SEC"). A prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov. Electronic copies of the prospectus relating to this offering, when available, may be obtained from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at (212) 895-3745.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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.

Source: LM Funding America

• LM Funding America Inc