Secured Lender Position Creates Opportunity to
Potentially Acquire Financial Services Enterprise Blockchain
Platform
TAMPA,
Fla., May 23, 2023 /PRNewswire/ -- LM Funding
America, Inc. (NASDAQ: LMFA) ("LM Funding" or the
"Company"), a cryptocurrency 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, is unopposed and
expected to be approved by the bankruptcy court, and an auction
that could include other bids is anticipated to take place on
May 26, 2023. LM Funding is currently
the sole secured creditor for Symbiont as a result of a
$2 million secured loan it made to
Symbiont in December 2021.
Bruce M. Rodgers, Chairman, and
CEO of LM Funding commented, "We are making a stalking horse bid to
purchase the assets of Symbiont, including those related to its
Assembly™ financial services blockchain enterprise
platform. If we successfully acquire the assets, we intend to
pursue joint ventures and/or other strategic relationships to offer
Assembly to institutions to issue, track and manage financial
instruments, such as data, loans, and securities. We also plan to
investigate and consider other use cases for the Symbiont assets
and Assembly platform."
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 is listed as a secured creditor and is owed $2 million plus interest and expenses.
Symbiont was formed in 2013 to help financial institutions
leverage the Bitcoin blockchain to reduce risk, save
costs, and increase efficiencies. Symbiont reported partnerships
with large institutions, including index-fund giant Vanguard and
State Street, who used Symbiont's platform for a foreign exchange
forward contract. SWIFT, which helps banks move money across
borders, has said it was using Symbiont's technology.
Stated Rodgers, "We hope to acquire Symbiont's assets and build
organizations around those assets to grow value for our
shareholders."
About LM Funding America
LM 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 Statements
This 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 acquiring the Symbiont assets and the
risk of not successfully commercializing or realizing value from
those assets, if acquired. 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, LLC
Tel: (212) 671-1021
Email: LMFA@crescendo-ir.com
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SOURCE LM Funding America