RTTNews | Jul 12, 2021 06:59AM EDT

06:58 Monday, July 12, 2021 (RTTNews.com) - Lionheart Acquisition Corp. II (LCAP), a special purpose acquisition company, announced Monday a definitive agreement for a business combination with MSP Recovery, LLC.

The deal would result in MSP Recovery becoming a publicly listed company.

The business combination values MSP at a $32.6 billion pro forma enterprise value, excluding cash on the balance sheet.

The board of directors of Lionheart has unanimously approved the proposed transaction, which is expected to be completed in the fourth quarter of 2021.

The deal is subject to, among other things, the approval by Lionheart's stockholders and satisfaction or waiver of other customary conditions.

The transaction is anticipated to generate gross proceeds of up to around $230 million of cash, assuming no redemptions by Lionheart's public stockholders. These funds will be used to fund operations and growth.

MSP, specializing in Medicare Secondary Payer recovery rights and the recovery of improperly paid Medicaid, and commercial payments was founded in 2014.

Upon the deal closure, the combined company will be named MSP Recovery, and its common stock will be traded on Nasdaq under the new ticker symbols "MSPR".

Lionheart noted that MSP is currently pursuing the more than $50 billion it owns in billed amounts against insurance companies that have primary payment responsibility as well as medical and pharmaceutical manufacturers that either caused the expenditure of medical treatment or inflated their prices against the law.

MSP's $50 billion in billed amounts is projected to grow to $263 billion.

MSP will continue to be managed by its existing senior executive team, led by Chief Executive Officer, John Ruiz.

Read the original article on RTTNews ( https://www.rttnews.com/3208312/msp-recovery-to-go-public-through-business-combination-with-lionheart-acquisition.aspx)

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