LM Funding America (LMFA) Announces Stalking Horse Bid to Purchase the Assets of Symbiont.io, Inc. Out of Chapter 11 Bankruptcy

LM Funding America, Inc. (NASDAQ: LMFA) ("LM Funding" or the "Company"), a cryptocurrency mining and technology-based specialty finance company, today announced that its $2.6 million "stalking horse" bid to purchase the assets of Symbiont.io, Inc. ("Symbiont"), which is currently in Chapter 11 bankruptcy proceedings, is unopposed and expected to be approved by the bankruptcy court, and an auction that could include other bids is anticipated to take place on May 26, 2023. LM Funding is currently the sole secured creditor for Symbiont as a result of a $2 million secured loan it made to Symbiont in December 2021.

Bruce M. Rodgers, Chairman, and CEO of LM Funding commented, "We are making a stalking horse bid to purchase the assets of Symbiont, including those related to its Assembly^™ financial services blockchain enterprise platform. If we successfully acquire the assets, we intend to pursue joint ventures and/or other strategic relationships to offer Assembly to institutions to issue, track and manage financial instruments, such as data, loans, and securities. We also plan to investigate and consider other use cases for the Symbiont assets and Assembly platform."

Symbiont filed for Chapter 11 bankruptcy protection on Dec. 1, 2022. The New York-based company said its assets and liabilities both ranged between $1 million and $10 million, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York. LM Funding is listed as a secured creditor and is owed $2 million plus interest and expenses.

Symbiont was formed in 2013 to help financial institutions leverage the Bitcoin blockchain to reduce risk, save costs, and increase efficiencies. Symbiont reported partnerships with large institutions, including index-fund giant Vanguard and State Street, who used Symbiont's platform for a foreign exchange forward contract. SWIFT, which helps banks move money across borders, has said it was using Symbiont's technology.

Stated Rodgers, "We hope to acquire Symbiont's assets and build organizations around those assets to grow value for our shareholders."

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