Filing Details

Accession Number:
0001829126-21-007042
Form Type:
13D Filing
Publication Date:
2021-07-28 20:00:00
Filed By:
Custodian Ventures Llc.
Company:
Lm Funding America Inc. (NASDAQ:LMFA)
Filing Date:
2021-07-29
SEC Url:
13D Filing
Ownership Summary

Please notice the below summary table is generated without human intervention and may contain errors. Please refer to the complete filing displayed below for exact figures.

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
CUSTODIAN VENTURES 283,103 283,103 283,103 5.2%
DAVID ELLIOT LAZAR 283,103 283,103 283,103 5.2%
Filing

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D

(Rule 13d-101)

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

 

(Amendment No. )1

 

LM Funding America, Inc.

(Name of Issuer)

 

Common Stock, par value $0.001 per share

(Title of Class of Securities)

 

502074404

(CUSIP Number)

 

DAVID ELLIOT LAZAR

C/O CUSTODIAN VENTURES LLC

1185 Avenue of the Americas, Third Floor

New York, New York 10036

(646) 768-8417

 

SPENCER FELDMAN, ESQ.

KENNETH A. SCHLESINGER, ESQ.

OLSHAN FROME WOLOSKY LLP

1325 Avenue of the Americas

New York, New York 10019

(212) 451-2300

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

July 27, 2021

(Date of Event Which Requires Filing of This Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this Schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ☐.

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 
1The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

 

 

 

 

 

1

NAME OF REPORTING PERSONS

 

CUSTODIAN VENTURES LLC

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) ☐

(b)

3

SEC USE ONLY

 

4

SOURCE OF FUNDS

 

WC

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) ☐

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

WYOMING

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
7

SOLE VOTING POWER

 

- 0 -

8

SHARED VOTING POWER

 

283,103

9

SOLE DISPOSITIVE POWER

 

- 0 -

10

SHARED DISPOSITIVE POWER

 

283,103

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

283,103

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ☐

 

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

5.2%

14

TYPE OF REPORTING PERSON

 

OO

 

 2 

 

 

1

NAME OF REPORTING PERSONS

 

DAVID ELLIOT LAZAR

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)

(b)

3

SEC USE ONLY

 

4

SOURCE OF FUNDS

 

OO, PF

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) ☐

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

USA, ISRAEL

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
7

SOLE VOTING POWER

 

- 0 -

8

SHARED VOTING POWER

 

283,103

9

SOLE DISPOSITIVE POWER

 

- 0 -

10

SHARED DISPOSITIVE POWER

 

283,103

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

283,103

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ☐

 

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

5.2%

14

TYPE OF REPORTING PERSON

 

IN

 

 3 

 

 

The following constitutes the Schedule 13D filed by the undersigned (the “Schedule 13D”).

 

Item 1.Security and Issuer.

 

This statement relates to the Common Stock, par value $0.001 per share (the “Shares”), of LM Funding America, Inc., a Delaware corporation (the “Issuer”). The address of the principal executive offices of the Issuer is 1200 West Platt Street, Suite 100, Tampa, FL 33606.

 

Item 2.Identity and Background.

 

(a) This statement is filed by:

 

(i)Custodian Ventures LLC, a Wyoming limited liability company (“Custodian Ventures”); and

 

(ii)David Elliot Lazar, as the sole member and Chief Executive Officer of Custodian Ventures.

 

Each of the foregoing is referred to as a “Reporting Person” and collectively as the “Reporting Persons.” Each of the Reporting Persons is party to that certain Joint Filing Agreement, as further described in Item 6. Accordingly, the Reporting Persons are hereby filing a joint Schedule 13D.

 

(b) The principal business address of each of Custodian Ventures and Mr. Lazar is 1185 Avenue of the Americas, 3rd Floor, New York, New York 10036.

 

(c) The principal business of Custodian Ventures is assisting and providing custodial services to distressed public companies in securities and engaging in all related activities and transactions. The principal occupation of Mr. Lazar is serving as the sole member and Chief Executive Officer of Custodian Ventures.

 

(d) No Reporting Person has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

 

(e) No Reporting Person has, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

(f) Mr. Lazar is a citizen of the United States of America and Israel.

 

Item 3.Source and Amount of Funds or Other Consideration.

 

The Shares purchased by Custodian Ventures were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted. The aggregate purchase price of the 283,103 Shares directly beneficially owned by Custodian Ventures is approximately $1,143,736, excluding brokerage commissions.

 

 4 

 

 

Item 4.Purpose of Transaction.

 

The Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.

 

On July 29, 2021, Custodian Ventures issued a press release (the “Press Release”) announcing its ownership interest in the Issuer. The full text of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, engaging in communications with management and the Board of Directors of the Issuer, engaging in discussions with stockholders of the Issuer or other third parties about the Issuer and the Reporting Persons’ investment, including potential business combinations or dispositions involving the Issuer or certain of its businesses, making recommendations or proposals to the Issuer concerning changes to the capitalization, ownership structure, board structure (including board composition), potential business combinations or dispositions involving the Issuer or certain of its businesses, or suggestions for improving the Issuer’s financial and/or operational performance, purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, including swaps and other derivative instruments, or changing their intention with respect to any and all matters referred to in Item 4.

 

Item 5.Interest in Securities of the Issuer.

 

The aggregate percentage of Shares reported owned by each person named herein is based upon 5,414,296 Shares outstanding, which is the total number of Shares outstanding as of May 7, 2021, as reported in the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 14, 2021.

 

A.Custodian Ventures

 

(a)As of the date hereof, Custodian Ventures directly beneficially owned 283,103 Shares.

 

Percentage: Approximately 5.2%

 

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 283,103
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 283,103

 

(c)The transactions in the Shares by Custodian Ventures during the past sixty days are set forth in Schedule A and are incorporated herein by reference.

 

 5 

 

 

B.Mr. Lazar

 

(a)Mr. Lazar, as the sole member and Chief Executive Officer of Custodian Ventures, may be deemed the beneficial owner of the 283,103 Shares owned by Custodian Ventures.

 

Percentage: Approximately 5.2%

 

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 283,103
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 283,103

 

(c)The transactions in the Shares on behalf of Custodian during the past sixty days are set forth in Schedule A and are incorporated herein by reference.

 

The filing of this Schedule 13D shall not be deemed an admission that the Reporting Persons are, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, the beneficial owners of any securities of the Issuer that he or it does not directly own. Each of the Reporting Persons specifically disclaims beneficial ownership of the securities reported herein that he or it does not directly own.

 

(d)No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Shares.

 

(e)Not applicable.

 

Item 6.Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.

 

On July 29, 2021, the Reporting Persons entered into a Joint Filing Agreement in which the Reporting Persons agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of the Issuer to the extent required by applicable law. The Joint Filing Agreement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Other than as described herein, there are no contracts, arrangements, understandings or relationships among the Reporting Persons, or between the Reporting Persons and any other person, with respect to the securities of the Issuer.

 

Item 7.Material to be Filed as Exhibits.

 

99.1Press Release, dated July 29, 2021.

 

99.2Joint Filing Agreement, dated July 29, 2021.

 

 6 

 

 

SIGNATURES

 

After reasonable inquiry and to the best of his knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Dated: July 29, 2021

 

  CUSTODIAN VENTURES LLC
   
  By: /s/ David Elliot Lazar
    Name: David Elliot Lazar
    Title: Chief Executive Officer

 

  /s/ David Elliot Lazar
  David Elliot Lazar

 

 7 

 

 

SCHEDULE A

 

Transaction in the Shares During the Past Sixty Days

 

Nature of Transaction  Common Stock
Purchased/(Sold)
  Price Per
Share($)
   Date of
Purchase/Sale
           
CUSTODIAN VENTURES LLC
           
Sale of Common Stock  (10,000)  6.0539   07/08/2021
Sale of Common Stock  (10,000)  6.7300   07/08/2021
Sale of Common Stock  (5,000)  6.4203   07/08/2021
Sale of Common Stock  (5,000)  6.2701   07/08/2021
Sale of Common Stock  (8,000)  6.8872   07/08/2021
Purchase of Common Stock  10,000  3.9000   07/23/2021
Purchase of Common Stock  10,000  3.9900   07/23/2021
Purchase of Common Stock  10,000  3.9600   07/23/2021
Purchase of Common Stock  10,000  4.0000   07/23/2021
Purchase of Common Stock  9,000  3.9900   07/23/2021
Purchase of Common Stock  10,000  3.9178   07/23/2021
Purchase of Common Stock  10,000  4.0358   07/23/2021
Purchase of Common Stock  3,685  3.9762   07/23/2021
Purchase of Common Stock  10,000  4.0412   07/23/2021
Purchase of Common Stock  5,000  3.9784   07/23/2021
Purchase of Common Stock  5,000  4.0536   07/23/2021
Purchase of Common Stock  10,000  4.1236   07/23/2021
Purchase of Common Stock  10,000  4.1200   07/23/2021
Purchase of Common Stock  5,000  4.0500   07/23/2021
Purchase of Common Stock  5,000  4.0300   07/23/2021
Purchase of Common Stock  5,000  4.0400   07/23/2021
Purchase of Common Stock  10,000  4.0693   07/23/2021
Purchase of Common Stock  5,000  4.0600   07/23/2021
Purchase of Common Stock  5,000  4.0899   07/23/2021
Purchase of Common Stock  5,000  4.0950   07/23/2021
Purchase of Common Stock  5,000  4.0990   07/23/2021
Purchase of Common Stock  10,000  4.1164   07/23/2021
Purchase of Common Stock  10,000  4.1470   07/23/2021
Purchase of Common Stock  5,000  4.0600   07/26/2021
Purchase of Common Stock  5,000  4.0599   07/26/2021
Purchase of Common Stock  5,000  4.0713   07/26/2021
Purchase of Common Stock  5,000  4.0489   07/26/2021
Purchase of Common Stock  5,000  4.0600   07/26/2021
Purchase of Common Stock  5,000  4.0691   07/26/2021
Purchase of Common Stock  4,036  4.1071   07/26/2021
Purchase of Common Stock  5,000  4.0995   07/26/2021
Purchase of Common Stock  5,000  4.1100   07/26/2021
Purchase of Common Stock  5,000  4.0997   07/26/2021
Purchase of Common Stock  10,000  4.0900   07/26/2021
Purchase of Common Stock  8,403  4.0282   07/27/2021
Purchase of Common Stock  10,000  4.0300   07/27/2021
Purchase of Common Stock  10,000  3.9724   07/27/2021
Purchase of Common Stock  5,000  4.0070   07/27/2021