MSP Recovery, Inc., a company specializing in computer processing and data preparation, announced on Monday a significant agreement modification with Virage Recovery Master LP. The amendment, effective September 6, 2024, pertains to the waiver of a clause in their Master Transaction Agreement that would have expedited the payment owed to Virage under certain conditions.
The original agreement, dated March 9, 2022, and subsequently amended on April 11, 2023, and November 13, 2023, included a provision that required MSP Recovery to accelerate the "VRM Full Return" payment to Virage if the company received a negative going concern opinion from its auditors. However, Virage has agreed to waive this requirement for the fiscal year ending December 31, 2024, should such an opinion be issued.
This waiver indicates a degree of flexibility in the financial arrangements between MSP Recovery and Virage, providing MSP Recovery with more leeway in managing its finances in the event of a negative audit outcome.
The specifics of the waiver and its implications for MSP Recovery's financial obligations to Virage are detailed in a letter agreement dated September 6, 2024, which has been filed with the Securities and Exchange Commission.
MSP Recovery, previously known as Lionheart Acquisition Corp. II, is headquartered in Miami, Florida, and is listed on The Nasdaq Global Market under the ticker symbols LIFW for its Class A common stock, LIFWW for its redeemable warrants with an exercise price of $287.50 per share, and LIFWZ for its redeemable warrants with an exercise price of $0.0025 per share.
In other recent news, MSP Recovery issued a substantial number of shares to investment firm Yorkville under a Standby Equity Purchase Agreement. The issuance of 2,686,780 shares of Class A Common Stock is part of a broader strategy to finance MSP Recovery's growth.
This arrangement follows a trigger event related to the company's stock performance, requiring MSP Recovery to make monthly payments to Yorkville, with the first payment deferred until September 2024.
Simultaneously, LifeWallet announced a comprehensive settlement with a group of property and casualty insurers. The settlement, part of an ongoing effort to recover improperly paid Medicare claims, includes a 10-year agreement for the insurers to provide historical and future claims data. This initiative is part of LifeWallet's broader plan to streamline the recovery process and enhance its claims reconciliation capabilities.
Furthermore, LifeWallet has completed the first version of its clearinghouse solution, developed in partnership with Palantir Technologies (NYSE:PLTR). This system aims to improve the efficiency of identifying and recovering owed payments.
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