17th Jan 2019 14:34
LONDON (Alliance News) - Craven House Capital PLC said Thursday that it completed the sale of its wholly-owned medical insurance unit IIU Inc to LM Funding America Inc for a lower price than previously announced.
Craven sold the business for USD5.1 million as certain assets owned by IIU are no longer being acquired by LM. Craven first announced the sale back in December, which was supposed to be completed for USD6.0 million.
The purchase price includes LM Funding cancelling its principal and accrued interest promissory notes, valued at USD1.5 million.
LM Funding also issued Craven a convertible promissory note valued USD3.6 million. The note will have an annual interest rate of 3%.
The note is due 360 days after the issue. It can be paid in cash or converted to LM Funding shares at USD2.41 each. Craven currently owns 640,000 shares in LM Funding.
Shares in Craven House Capital were untraded at USD3.55 on Thursday.
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