LM Funding America, Inc. Acquires Assets of Symbiont.io, Inc. from Chapter 11 Bankruptcy
06 Junho 2023 - 9:30AM
LM Funding America, Inc. (NASDAQ: LMFA) (“LM
Funding” or the “Company”), a Bitcoin mining and
technology-based specialty finance company, today announced that
its $2.6 million “stalking horse” bid to purchase the assets
of Symbiont.io, Inc. (“Symbiont”), which is currently in
Chapter 11 bankruptcy proceedings, was approved by the bankruptcy
court on June 2, 2023. LM Funding was the sole secured
creditor for Symbiont as a result of a $2 million secured loan it
made to Symbiont in December 2021, and has now acquired Symbiont’s
assets with a credit bid.
Bruce M. Rodgers, Chairman and CEO of LM Funding
commented, “We are in the fortunate position of having now acquired
the assets of Symbiont, including those related to its Assembly™
financial services blockchain enterprise platform. We currently
intend to pursue strategic relationships to offer Assembly™ to
institutions to issue, track and manage financial instruments, such
as data, loans, and securities. Additionally, we plan to explore
and consider, other use cases for the Symbiont assets and Assembly™
platform.”
Symbiont was formed in 2013 to help financial
institutions leverage the Bitcoin blockchain to reduce risk, save
costs, and increase efficiency. Symbiont Assembly™ is a blockchain
platform for building and running decentralized applications called
“smart contracts.” Early on, Symbiont raised money from credible
investors, including the former CEO of the New York Stock Exchange,
and formed a board comprised of a former Governor of Delaware,
former Commissioner of the Securities Exchange Commission, Former
CEO of NYSE, Euronext and the Intercontinental Exchange, and
representatives from the London Stock Exchange. Symbiont won
contracts with large institutions including index-fund leader
Vanguard. In 2022, Vanguard and State Street used Symbiont’s
platform for a foreign exchange forward contract. More recently,
SWIFT, which helps banks move money across borders, announced it
was using Symbiont's technology.
Symbiont filed for Chapter 11 bankruptcy
protection on Dec. 1, 2022. The New York-based company said its
assets and liabilities both ranged between $1 million and $10
million, according to a filing with the U.S. Bankruptcy Court for
the Southern District of New York. LM Funding was listed as a
secured creditor and was owed $2 million plus interest and
expenses. LM Funding made a stalking horse credit bid to purchase
Symbiont’s assets.
“We have spoken with Symbiont’s technical
experts and several customers,” stated Rodgers. “We believe we have
the opportunity to make Symbiont’s technology revenue producing by
forming strategic relationships with technology companies to
complete projects and develop further solutions for potential
Symbiont customers.” Rodgers finished by stating,
“Symbiont’s engineers, programmers, and technologists have created
something meaningful, and we hope to work with that caliber of
people going forward.”
About LM Funding AmericaLM Funding America,
Inc., (Nasdaq: LMFA) together with its subsidiaries, is a
cryptocurrency mining business that commenced Bitcoin mining
operations in September 2022. The Company also operates a
technology-based specialty finance company that provides funding to
nonprofit community associations (Associations) located in the
state of Florida by funding a certain portion of the Associations'
rights to delinquent accounts that are selected by the Associations
arising from unpaid Association assessments.
Forward-Looking StatementsThis press
release may contain forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Words such as
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,”
and “project” and other similar words and expressions are intended
to signify forward-looking statements. Forward-looking statements
are not guaranties of future results and conditions but rather are
subject to various risks and uncertainties. Some of these risks and
uncertainties are identified in the company's most recent Annual
Report on Form 10-K and its other filings with the SEC, which are
available at www.sec.gov. These risks and uncertainties
include, without limitation, uncertainty created by the COVID-19
pandemic, the risk of not successfully commercializing or realizing
value from the Symbiont assets, the risks of operating in the
cryptocurrency mining business, the capacity of our bitcoin
mining machines and our related ability to purchase power at
reasonable prices, and the ability to finance our planned
cryptocurrency mining operations. The occurrence of any of these
risks and uncertainties could have a material adverse effect on our
business, financial condition, and results of operations.
Contact:Crescendo Communications, LLCTel:
(212) 671-1021Email: LMFA@crescendo-ir.com
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