Lionheart II (LCAP) Shareholders Approve MSP Recovery Deal

Lionheart Acquisition Corp. II (NASDAQ:LCAP) announced that its shareholders have voted to approve its combination with Medicare billing firm MSP Recovery in a special meeting held earlier today.

Although today’s press release did not disclose redemption numbers, Lionheart II traded above its trust value of $10 throughout its redemption deadline Monday, May 16, and opened today at $10.49.

The SPAC announced last week that it had secured a funded and committed equity facility with an affiliate of Cantor, which allowed Cantor to purchase up to 3.5 million shares from LCAP stockholders who have elected to redeem their shares at or below the redemption price. This provides some security to Lionheart II in its redemptions situation and covers the deal’s $30 million minimum cash condition.

Lionheart II also announced last week that its previously disclosed pool of 1,029,000,000 warrants will be distributed to non-redeeming shareholders. Non-redeeming shareholders will receive these as a dividend on the 10th day following closing of the combination.

The parties expect to close the business combination on Friday, May 20, 2022. Following the closing, the shares of Class A Common Stock of the combined company are anticipated to continue to be traded on Nasdaq under the symbol “MSPR”. The combined company’s public warrants are anticipated to continue to be traded on Nasdaq under the symbol “LCAPW”, and the new warrants issued in connection with the previously announced and declared LCAP dividend are anticipated to commence trading on Nasdaq under the symbol “MSPRW” when issued.

LCAP initially announced its $32.6 billion combination with MSP Recovery on July 12, 2021. Coral Gables, Florida-based MSP has built a proprietary model for identifying and acquiring claims against primary care payers in the healthcare industry that unduly passed costs onto Medicare, Medicaid and other payors.

Five other proposals were also considered and voted upon by LCAP’s stockholders at today’s special meeting, all of which were approved.

ADVISORS

• Keefe, Bruyette & Woods, a Stifel Company, is serving as financial advisor to MSP Recovery.
• Nomura Securities International, Inc. is serving as financial and capital markets advisor to Lionheart Acquisition Corp II.
• Weil, Gotshal & Manges LLP is serving as legal counsel to MSP Recovery.
• DLA Piper LLP is serving as legal counsel to Lionheart Acquisition Corp II.