LM Funding America (NASDAQ:LMFA) stock is soaring higher on Friday after closing its initial public offering (IPO) for LMF Acquisition Opportunities (NASDAQ:LMAO).
LMF Acquisition Opportunities is a special purpose acquisition company (SPAC) created by LM Funding America with the goal of taking another company public. The SPAC plans to target companies in the financial services and financial technology sectors.
The LMF Acquisition Opportunities IPO saw the company offering a total of 10.35 million units for a price of $10 each. That includes the company’s extra offering to underwriters of the IPO. In total, it raised gross proceeds of $103.5 million from the offering.
The units included in the offering trade under the LMAOU stock ticker. These units contain one share of LMAO stock and a warrant for the purchase of another share at a price of $11.50 each. Both LMAO stock and the warrants will trade on the Nasdaq Exchange.
Following news of the SPAC IPO closing, LMFA is seeing heavy trading of its stock. That has more than 67 million changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is roughly 11 million shares.
LM Funding America is a specialty financing company that helps provide funding to non-profit community associations. Investors that want to know more about it can follow this link for a breakdown of the company.
LMFA stock was up 59.7% as of Friday morning and is up 246.4% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
