MSP Recovery, Inc., a company specializing in computer processing and data preparation services, disclosed on Friday that it has issued a substantial number of shares to an investment firm as part of a previously arranged financing agreement. The transaction, which took place on Monday, involved the issuance of 2,686,780 shares of Class A Common Stock to YA II PN, Ltd., commonly known as Yorkville.
This issuance is pursuant to the terms of the Exchangeable Promissory Notes, which are part of a Standby Equity Purchase Agreement (SEPA) dated November 14, 2023. The agreement was amended and solidified between Yorkville and MSP Recovery, allowing for the sale of equity under certain conditions.
The shares were issued without being registered under the Securities Act of 1933, relying on an exemption provided by Section 4(a)(2) of the Act. This exemption permits the sale of securities without registration to accredited investors under specific circumstances.
MSP Recovery's engagement with Yorkville is not new, as the SEPA and the related form of Exchangeable Promissory Notes were referenced in previous filings with the Securities and Exchange Commission (SEC). The recent share issuance is a continuation of the financial arrangements outlined in these documents.
The company, which operates under the ticker NASDAQ:LIFW for its Class A Common Stock, and NASDAQ:LIFWW and NASDAQ:LIFWZ for its redeemable warrants, has been proactive in securing financing to support its operations. The transaction with Yorkville is part of MSP Recovery's broader strategy to manage its capital and finance its growth.
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