Custodian Ventures has filed a Schedule 13D announcing having acquired around 5.2% of LM Funding America Inc. (NASDAQ: LMFA) stock.
Custodian Ventures buys 5.2% Interest in LMFA
As a venture capital firm, Custodian Ventures focuses on reverse mergers and other event-driven investments. David E. Lazar, the company’s CEO, has extensive experience in operations, audit preparation, capital restructuring, accounting, debt financing, due diligence, and mergers and acquisitions.
Lazar said, “We invested in LMFA due to the Company’s stated intention to explore potential acquisitions, financing activities and/or strategic transactions to maximize shareholder value following the improvement of its cash position and the digital assets strategy the Company unveiled in January 2021. We commend the Board of Directors on the Company’s progress in line with this strategy to date including the announcement of both its recent purchase of $2 million in digital assets and its intent to develop transactional capabilities involving digital assets, including Bitcoin and Ether, the native cryptocurrency of the Ethereum platform, both organically and through potential acquisitions.”
LM Funding America reports Q1 2021 financial results
In Q1, LM Funding America saw its revenue drop from $341,000 in Q1 2021 to $177,000 in Q1 2021, with an operating loss of $1.728 million relative to $561,000 in Q1 2020. The company realized $5.7 million from the transaction with BORQS Technolofies Inc., which was initially estimated to net $2.0 million.
The company’s CEO and Chairman Bruce Rogers said, “Thus far in 2021 we continue to expand our ‘We Buy Problems’ mission. In addition to $4.4 million in net income during the quarter, our cash position has increased to $17.8 million or $3.29 per basic common share as of March 31st. Revenues from our community association receivables business declined as we continue to develop a digital asset technology strategy to unlock the potential of this business. We expanded our core business of buying discounted debt and collecting it through court proceedings with the Borqs transaction.”