MSP Recovery, Inc. (NASDAQ:LIFW), a Delaware-incorporated company specializing in computer processing and data preparation, has entered into an agreement with YA II PN, Ltd., also known as Yorkville, regarding a material definitive agreement. This follows a trigger event related to the company's stock performance, as per the latest 8-K filing with the Securities and Exchange Commission.
The trigger event occurred when the daily volume-weighted average price of MSP Recovery's Class A Common Stock fell below the Floor Price of $0.50 for ten consecutive days. This event was defined in the Exchangeable Promissory Notes issued to Yorkville under the Standby Equity Purchase Agreement (SEPA) dated November 14, 2023.
In response to the trigger event, MSP Recovery is required to make monthly payments to Yorkville starting on the 7th trading day after the trigger event, with subsequent payments on the same day of each following month. However, Yorkville has agreed to defer the first monthly payment until September 11, 2024.
The agreement between MSP Recovery and Yorkville was formalized on Thursday, July 12, 2024, with the signing of a Letter Agreement. This agreement has implications for the financial arrangements between the two parties, as detailed in the Exchangeable Promissory Notes and the SEPA.
The terms of the agreement and the related financial instruments are detailed in the exhibits attached to the 8-K filing, which include the Letter Agreement dated July 12, 2024, the form of Exchangeable Promissory Notes, and the Yorkville SEPA.
MSP Recovery's business address is located at 2701 Le Jeune Road, Floor 10, Coral Gables, Florida, and the company can be contacted via phone at 305.614.2222. The company was formerly known as Lionheart Acquisition Corp. II, with a name change on July 24, 2020, and originally as Lionheart Acquisition Corp. with a name change on February 5, 2020.
InvestingPro Insights
Amidst the recent financial developments for MSP Recovery, Inc. (NASDAQ:LIFW), current and potential investors may consider the latest data and analysis from InvestingPro to gain deeper insights. With a market capitalization of $61.37 million, the company is grappling with a significant debt burden and is quickly burning through cash, as indicated by an operating income margin of -5657.89% for the last twelve months as of Q1 2024. Moreover, despite a notable quarterly revenue growth of 697.11% in Q1 2024, the overall revenue growth has declined by 31.76% over the last twelve months.
InvestingPro Tips suggest caution due to MSP Recovery's high revenue valuation multiple and the fact that short-term obligations exceed liquid assets. Furthermore, the stock price has experienced a significant return over the last week, yet it has been on a downward trend over the last year, with a total price return of -92.85%. Analysts predict that the company will be profitable this year, which could be a positive sign for investors looking for long-term growth.
For those interested in a comprehensive analysis, there are additional InvestingPro Tips available that can provide more detailed guidance on MSP Recovery's financial health and stock performance. To explore these insights, visit https://www.investing.com/pro/LIFW and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. This could be an opportune moment to leverage the analytical tools provided by InvestingPro to make informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.