3rd Jan 2020 10:38
(Alliance News) - Craven House Capital PLC said Friday its 100%-owned subsidiary Craven House Capital North America LLC has agreed to a loan from LM Funding America Inc.
Craven House Capital PLC holds a 26% stake in LM Funding America.
The loan agreement will see LM Funding lend CRVNA USD1.5 million, which will be used to provide liquidity for investment purposes. The loan will act as an advance on the USD3.6 million convertible loan repayment owed to CRVNA from LM Funding.
CRVNA has agreed to extend the maturity of the loan owed to it by LM Funding to April 15 next year from January 16 this year.
"In order to accommodate this CRVNA requested a partial repayment of USD1.5 million against the CRVNA loan, however, at the request of LM Funding this has been structured as separate loan facility in the form of the LM Funding loan which provides additional benefit to CRVNA as the LM Funding loan is repayable in shares of LM Funding at a premium to the current market price of LM Funding," Craven House Capital explained.
The USD1.5 million borrowed by CRVNA is repayable on April 15 this year, with interest payable at a rate of 6% per annum. It can be repaid in cash or 640,000 shares in LM Funding, from CRVNA to LM Funding.
Shares in Craven House Capital were 8.1% higher in London on Friday at USD2.0 each. LM Funding America closed trading in New York on Thursday at USD0.83 each.
By Paul McGowan; [email protected]
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