MSP Recovery, Inc. to Trade on Nasdaq Under the
Symbol “MSPR” Starting May 24
MSP Recovery, Inc. (“MSPR”), formerly known as Lionheart
Acquisition Corporation II, a Delaware corporation (Nasdaq: LCAPU,
LCAP, LCAPW, “Lionheart” or “LCAP”), today announced that it has
closed the previously announced business combination (the
“transaction”) with MSP Recovery, LLC. (“MSP”), a Medicare,
Medicaid, commercial, and secondary payer reimbursement recovery
leader. The business combination was approved by a majority of
LCAP’s stockholders in an extraordinary meeting on May 18,
2022.
As previously announced, following the closing, LCAP’s Class A
Common Stock will cease trading on the Nasdaq Capital Market
(“Nasdaq CM”) under the symbol “LCAP” (CUSIP 53625R104), and will
begin trading tomorrow -- May 24, 2022 -- on Nasdaq Global Market
(“Nasdaq GM”) under the symbol “MSPR” (CUSIP 553745100) and LCAP’s
warrants, each to purchase one share of Class A Common Stock of
MSPR at $11.50 per share, will cease trading on the Nasdaq CM under
the symbol “LCAPW” and begin trading on Nasdaq GM under the symbol
“MSPRZ”.
“Today’s news is the latest milestone showing that MSP Recovery
has entered into an exciting new stage as one of the nation’s most
sophisticated and successful payer reimbursement recovery companies
that continues to pave the way in discovering and recovering
improperly paid claims as well as the development of cutting edge
technology to fix the fragmented healthcare systems, to not only
save tax payer dollars but also save lives,” said MSP Recovery
Founder and CEO, John H. Ruiz. “The closing of this business
combination is proof of the confidence in the strength of our
business strategy and effectiveness of our innovative approach.
Since the announcement of the business combination agreement we
have seen a substantial amount of new business over and above what
we originally projected,” said Mr. Ruiz.
The business combination with LCAP announced on July 12, 2021
was based on an enterprise value of the combined company of
approximately $32.6 billion. The $32.6 billion valuation was based
on projected MSPR Recovery Proceeds. Since July 2021, however, MSPR
has been developing additional revenue streams.
As of December 31, 2021, MSPR’s portfolio included more than
$1.5 trillion in billed amount (reflecting the full amount billed
by a provider to a health plan or insurer), up more than 530% from
$242 billion in 2020. MSPR’s portfolio included $364.4 billion in
paid amount as of the same date (reflecting amounts actually paid
to a provider from a health plan), up more than 520% from $58.4
billion in 2020.
And since announcing the Business Combination in July 2021, MSPR
has seen a significant increase in interest from various entities
in the healthcare industry. During that time period alone, MSPR
has: vetted 91 prospects; made proposals to 48 entities; conducted
data diligence on 46 entities; generated a data evaluation report
for 21 entities; and negotiated initial agreements with 20
entities. MSPR already has over 150 assignors, and continues to
grow its number of assignors.
“I am thrilled to see this business combination successfully
executed and look forward to working with John and the MSP Recovery
team as they continue to innovate on behalf of a growing list of
healthcare providers and payers,” said Ophir Sternberg, Chairman
and CEO of Lionheart. “MSP Recovery is well-positioned to continue
to expand its footprint in this promising market.”
Advisors
Keefe, Bruyette & Woods, a Stifel Company, served as
financial advisor to MSP Recovery. Nomura Securities International,
Inc. served as financial and capital markets advisor to Lionheart
Acquisition Corp II. Weil, Gotshal & Manges LLP served as legal
counsel to MSP Recovery. DLA Piper LLP served as legal counsel to
Lionheart Acquisition Corp II. ICR, LLC served as communications
advisor to MSP Recovery.
About MSP Recovery
Founded in 2014, MSP Recovery has become a Medicare, Medicaid,
commercial, and secondary payer reimbursement recovery leader,
disrupting the antiquated healthcare reimbursement system with
data-driven solutions to secure recoveries against responsible
parties. MSP Recovery provides the healthcare industry with
comprehensive compliance solutions, while innovating technologies
to help save lives. For more information, visit:
www.msprecovery.com
About Lionheart Acquisition Corporation II
Lionheart Acquisition Corporation II was a blank check company
formed for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. For more
information, visit: www.LCAP2.com.
Cautionary Note Regarding Forward Looking Statements
This communication includes forward looking statements within
the meaning of the safe harbor from civil liability provided for
such statements by the Private Securities Litigation Reform Act of
1995 (set forth in Section 21E of the Securities Exchange Act of
1934, as amended (“Exchange Act”) and Section 27A of the Securities
Act, which include information relating to future events, future
financial performance, strategies, expectations, competitive
environment, regulation and availability of resources and involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements to be
materially different from any future results, performances or
achievements expressed or implied by the forward-looking
statements. These statements are often accompanied with or by words
such as “expects”, “plans”, “ projects”,” forecasts”,” estimates”,”
intends”, “expects”, “anticipates”, “seeks”, “ targets”,
“continues”, “ believes”, “opinion”, “will”, “could”, “future”,
“growth”, or “may” (or the negatives thereof) or other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These forward
looking statements include, but are not limited to, statements
regarding MSP’s plans, goals and objectives, forecasts, budgets or
projections and any related assumptions and statements and the
implied enterprise value and MSP’s expectations with respect to
future performance. There is no guarantee that prospects or results
or the timing of events included or referred to in this
communication, including the continued utilization of LifeWallet,
or that it will save lives, will be achieved or that MSP will be
able to implement successfully its investment strategy or achieve
its investment objectives or return targets. Accordingly, we
caution you against relying on forward-looking statements. Forward
looking statements also are subject to a number of significant
risks and uncertainties that could cause the actual results to
differ materially, and potentially adversely, from those express or
implied in the forward-looking statements. These statements are
based on various assumptions, whether or not identified in this
communication, and on the current expectations of management and
are not predictions of actual performance. Actual events and
circumstances are difficult or impossible to predict and may differ
from assumptions, and such differences may be material. Many actual
events and circumstances are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
and are beyond the control of MSP and are difficult to predict.
These forward-looking statements are provided for illustrative
purposes only and are not intended to serve as, and must not be
relied on by any investor as, a guarantee, an assurance, a
prediction or a definitive statement of fact or probability.
Factors that may cause such differences include, but are not
limited to, operating costs and future business, investment,
holding and sale decisions and costs; the risks that the
anticipated benefits of the launch and adoption of LifeWallet are
not realized or are delayed; the risks associated with MSP’s
business, including, among others, MSP’s ability to capitalize on
its assignment agreements and recover monies that were paid by the
assignors; litigation results; the validity of the assignments of
claims to MSP; a determination that MSP’s claims are not
reasonable, related or necessary; the failure of MSP’s clients to
renew their agreements with MSP (or terminate those agreements
early); MSP’s claims being within applicable statutes of
limitations; the inability to successfully expand the scope of
MSP’s claims or obtain new data and claims from MSP’s existing
assignor base or otherwise; the limited number of MSP’s assignors
and the associated concentration of MSP’s current and future
potential revenue; internal improvements to claims and retail
billing processes by MSP’s clients that reduce the need for and
revenue generated by MSP’s products and services; healthcare
spending fluctuations; programmatic changes to the scope of
benefits and limitations to payment integrity initiatives that
reduce the need for MSP’s services; delays in implementing MSP’s
services to its claims; system interruptions or failures;
cyber-security breaches and other disruptions that could compromise
MSP’s data; MSP’s failure to maintain or upgrade its operational
platforms; MSP’s failure to innovate and develop new solutions, or
the failure of those solutions to be adopted by MSP’s existing and
potential assignors; MSP’s failure to comply with applicable
privacy, security and data laws, regulations and standards,
including with respect to third party providers; changes in
legislation related to healthcare programs and policies; changes in
the healthcare market; negative publicity concerning healthcare
data analytics and payment accuracy; competition; successfully
protecting MSP’s intellectual property rights; the risk that third
parties may allege infringement of their intellectual property;
changes in the healthcare regulatory environment and the failure to
comply with applicable laws and regulations or the increased costs
associated with any such compliance; failure to manage MSP’s
growth; the inability to attract and retain key personnel; MSP’s
reliance on its senior management team and key employees and the
loss it could sustain if any of those employees separated from the
business; the failure of vendors and providers to deliver or
perform as expected, or the loss of such vendors or providers;
MSP’s geographic concentration; MSP’s relatively limited operating
history, which makes it difficult to evaluate its current or future
business prospects; the impact of the ongoing COVID-19 pandemic;
and the risk that MSP may not be able to develop and maintain
effective internal controls. The foregoing list of factors is not
exhaustive. If any of these risks materialize or MSP’s assumptions
prove incorrect, actual results may differ materiality from the
results implied by these forward-looking statements. There may be
additional risks that we do not presently know or currently believe
are immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. The foregoing
list of factors is not exclusive. This communication speaks only as
of the date indicated, and the statements, expressions, information
and data included therein may change and may become stale,
out-of-date or no longer applicable. We do not have, and do not
undertake, any obligation to update, amend or revise this
communication (or to provide new, amended or revised materials),
including with respect to any forward-looking statements, whether
as a result of new information, future events, changed plans or
circumstances or any other reason, except as required by law. The
communication should not be relied upon as representing our
assessments as of any date subsequent to the date of this
communication. Accordingly, undue reliance should not be placed
upon the communication, including the forward-looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220523005964/en/
For Media: ICR, Inc. MSP@icrinc.com
For Investors: ICR, Inc. Marc Griffin
Marc.Griffin@icrinc.com
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