MSP Recovery reaches agreement on payment schedule

In a recent development, MSP Recovery, Inc., a company specializing in computer processing and data preparation, has entered into an agreement concerning its financial obligations under a set of promissory notes. With a current market capitalization of just $3.97 million and trading at $1.87 per share, the company faces significant financial challenges. According to InvestingPro analysis, MSP Recovery operates with a significant debt burden and is quickly burning through cash. This news follows a period of trading where the company’s stock value dipped below the agreed-upon threshold.

The agreement, detailed in a Form 8-K filing with the Securities and Exchange Commission, addresses the conditions triggered when the daily volume-weighted average price (VWAP) of MSP Recovery’s Class A Common Stock fell below the floor price of $3.75 for ten consecutive trading days. The stock has experienced significant volatility, with a beta of -2.54 and a dramatic 93.3% decline over the past year. This event, which occurred at the close of the primary market on October 18, 2024, activated a clause in the company’s arrangement with YA II PN, Ltd., known as Yorkville.

As a result of this "Floor Price Trigger," MSP Recovery is required to make monthly payments beginning seven trading days after the trigger event and continuing on the same day of each subsequent month. However, an amendment to the agreement was made on January 24, 2025, stipulating that the first monthly payment will be due no earlier than April 30, 2025.

Additionally, starting February 3, 2025, MSP Recovery will issue at least 100,000 shares per week to Yorkville for eight consecutive weeks, totaling up to 898,939 shares. These shares are already registered for resale and are part of the company’s ongoing efforts to manage its financial commitments as per the amended Standby Equity Purchase Agreement (SEPA) with Yorkville.

The terms of the agreement, including the delayed payment schedule and the share issuance plan, are aimed at providing MSP Recovery with a structured path to fulfill its obligations under the SEPA. The company’s management and legal counsel, represented by Alexandra Plasencia, have taken the necessary steps to ensure compliance with the SEC’s reporting requirements.

This announcement is based on a press release statement and provides investors with crucial information regarding MSP Recovery’s current financial strategy and adherence to its agreements. The company, previously known as Lionheart Acquisition Corp. II, is headquartered in Miami, Florida, and is listed on the Nasdaq Capital Market under the trading symbols MSPR for its Class A common stock and MSPRW and MSPRZ for its redeemable warrants.

In other recent news, MSP Recovery, Inc. has seen significant developments. The company reported a robust revenue growth of 218% over the last twelve months. In a strategic move, MSP Recovery transitioned its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, adhering to the regulatory framework while continuing to offer its shares to a broad investor base.

MSP Recovery also underwent a significant rebranding initiative, consolidating all its lines of business under the MSP Recovery brand. The company now trades on the Nasdaq under the new ticker symbol, "MSPR", marking a new phase in its development.

The company has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its Class A common stock remains actively traded on the Nasdaq Global Market. It has also issued new warrants to Virage Recovery Master LP, as part of an ongoing agreement.

In a significant expansion of the company’s claims recovery operations, MSP Recovery acquired recovery rights to a portfolio of Medicare Secondary Payer claims exceeding $10.6 billion from Hazel Partners Holdings LLC. The company’s Board of Directors has been authorized to implement a reverse stock split of its common stock, a move supported by the majority of stockholders. Finally, MSP Recovery issued a substantial number of shares to investment firm Yorkville, as part of a broader strategy to finance its growth.

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