Completion of purchase of IIU, Inc. from LMFA
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Craven House Capital plc
("Craven House" or the "Company")
Completion of purchase of IIU, Inc. from LM Funding America Inc.
The Company announces that Craven House Capital North America LLC ("CRVNA" - a wholly owned subsidiary of the Company) has completed the purchase of 100% of the outstanding share capital of IIU Inc., ("IIU" - a medical insurance broker) from LM Funding America Inc. ("LMFA").
CRVNA previously sold IIU to LMFA in January 2019 for a total purchase price of approximately $5.1 million, $3.6m of which was paid via the issuance by LMFA of a Convertible Promissory Note ("Convertible Note"). (As announced on 17 January 2019:https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/CRV/13938506.html)
In consideration for the purchase of IIU, CRVNA will cancel the Convertible Note along with any principal and accrued interest payments. IIU reported a loss for the 12 months to 31 December 2019 of $36,700 and net assets of $1.02m.
The Company has determined that, given the recent extension granted to the Convertible Note and the delays experienced in LMFA seeking shareholder approval to allow the Convertible Note to be converted into shares in LMFA, it is in the best interests of Craven shareholders to agree to the cancellation of the Convertible Note and regain full ownership of IIU and its subsidiaries which continue to trade successfully and profitably.
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For further information please contact:
Craven House Capital Plc
Tel: 0203 286 8130
Tel: 01483 413500
SPARK Advisory Partners Limited
Matt Davis/Mark Brady
Tel: 0203 368 3550
About Craven House Capital:
The Company's Investing Policy is to invest in or acquire a portfolio of companies, partnerships, joint ventures, businesses or other assets globally in any geographic jurisdiction. The company will invest in both developed and developing markets providing long term patient capital and is often involved in special situations, restructuring, expansion and turn around investments in crisis and transitioning economies.
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