SCHEDULE 13G/A: L1 Capital Reduces LM Funding Stake Below 5%

L1 Capital Global Opportunities Master Fund, Ltd. has amended its Schedule 13G, reporting a reduced beneficial ownership of 4.99% in LM FUNDING AMERICA, INC. common stock.

Summary

• L1 Capital Global Opportunities Master Fund, Ltd. filed an Amendment No. 1 to its Schedule 13G regarding its beneficial ownership in LM FUNDING AMERICA, INC.
• The reporting person now beneficially owns 816,600 shares of Common Stock, par value $0.001 per share, representing 4.99% of the class.
• This amount includes 816,600 warrants to purchase shares of Common Stock.
• The reported beneficial ownership does not include an additional 900,965 warrants to purchase common stock, which are subject to a 4.99% beneficial ownership limitation.
• The previous Schedule 13G, filed on August 25, 2025, covered 1,410,790 shares of Common Stock purchased on August 18, 2025.
• The percentage of class is based on 15,517,988 shares of Common Shares outstanding as of October 7, 2025, as per the Issuer's Prospectus filed on October 30, 2025.
• David Feldman and Joel Arber are Directors of L1 Capital Global Opportunities Master Fund, Ltd. and may be deemed to beneficially own these securities, though they disclaim beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 4

Explanation: The reduction in reported beneficial ownership by a significant institutional investor, even if strategic for the fund to stay below a reporting threshold, can be perceived negatively by the market for the issuer, potentially signaling reduced conviction.

Positives

• L1 Capital Global Opportunities Master Fund, Ltd. remains a significant institutional holder in LM FUNDING AMERICA, INC., indicating continued interest in the company.
• The fund's decision to maintain its reported beneficial ownership below the 5% threshold may signal a passive investment intent, avoiding more stringent regulatory reporting requirements associated with activist stakes.

Negatives

• The reported beneficial ownership has decreased from 1,410,790 shares in the previous filing to 816,600 shares (including warrants) in this amendment, indicating a reduction in the fund's reported stake.

Risks

• The reduction in reported beneficial ownership by a significant institutional investor could be perceived by the market as a signal of reduced confidence in LM FUNDING AMERICA, INC., potentially impacting investor sentiment and share price.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders may interpret the reduction in reported beneficial ownership by a significant institutional investor as a signal of reduced confidence or a strategic shift by the investor, potentially influencing their own investment decisions.

Key Dates

Keywords

LM Funding America, L1 Capital, Schedule 13G, beneficial ownership, common stock, warrants, SEC filing, institutional investor, stake reduction