RECOVERY INC A 8-K Filings

MSP Recovery, Inc. entered into new short-term funding arrangements with Hazel Partners Holdings LLC and VRM MSP Recovery Partners, LLC. Hazel agreed, in its sole discretion, to provide one-time advances of $0.05 million and $0.06 million under the existing working capital credit facility’s Operational Collection Floor, funded on August 6 and August 13, 2026. Separately, VRM agreed to one-time advances of recovery proceeds of $0.05 million each, funded on August 3 and August 12, 2026, to support payroll and certain IT expenses. The company states these advances are standalone accommodations, do not reinstate or expand ongoing availability under the facility, create no commitment for future funding, and do not provide access to recurring liquidity. The company cautions that receipt of these amounts should not be viewed as evidence of additional liquidity or of its ability to meet operating or debt service obligations beyond this specific funding.

MSP Recovery, Inc. entered into two letter agreements with Hazel Partners Holdings LLC under its existing working capital credit facility to obtain one-time discretionary advances of $0.07 million and $0.05 million, primarily for operating expenses. These advances increase the Operational Collection Floor beyond the approximately $6.0 million of aggregate advances disclosed as of the filing of the Q3‑2025 Form 10‑Q.

The company explains that this facility remains fully discretionary, provides no committed liquidity or borrowing base, and does not obligate Hazel to fund any amounts. It states that, aside from these specific advances, no additional funding is currently available, it has no rights to further advances, and it has no reasonable basis to expect additional funding or access to ongoing or recurring liquidity.

MSP Recovery, Inc. entered into a July 8, 2026 letter agreement with VRM MSP Recovery Partners, LLC under which VRM will provide a one-time $0.3 million advance to support certain operating expenses, consistent with an operating budget previously approved by VRM. The advance is described as a one-time accommodation and does not obligate VRM or its affiliates to provide future funding, with VRM expressly reserving all rights under existing transaction documents.

In connection with this additional advance, MSP Recovery and VRM agreed to amendments and supplements to their existing arrangements, including the Master Transaction Agreement and the Amended and Restated Security Agreement. The letter agreement states it is not intended to be a novation of existing obligations and does not change the priority of VRM’s existing liens except as expressly provided.

MSP Recovery, Inc. reports that its Class A common stock and publicly traded warrants will be moved by OTC Markets Group from the OTC Pink Limited Information tier to the Expert Market on or around July 17, 2026. This change follows the company’s failure to file its Form 10-K for the period ending December 31, 2025 and Form 10-Q for the period ending March 31, 2026, leaving it non-current under SEC reporting rules and Rule 15c2-11 requirements for public quoting. On the Expert Market, broker-dealers may publish only unsolicited quotes, and quotations are primarily accessible to broker-dealers, institutions, and other sophisticated investors, which can significantly limit retail trading access and liquidity.

MSP Recovery, Inc. entered a material letter agreement with Hazel Partners Holdings LLC, its lender under an existing working capital credit facility, for a one-time advance of $0.2 million on June 26, 2026. The funding is to be used primarily for operating expenses and was provided under Hazel’s discretionary “Operational Collection Floor” mechanism.

The company previously disclosed aggregate advances of about $6.0 million under this mechanism, with no remaining capacity. This new advance temporarily increases that floor but is described as a standalone accommodation that does not reinstate or reopen availability under the facility. MSP Recovery states that aside from this specific amount, no additional funding is available, and it has no rights to or reasonable basis to expect further advances from Hazel.

The company emphasizes that the $0.2 million advance does not change the discretionary nature of the credit facility or provide ongoing or recurring liquidity, and cautions that it should not be viewed as evidence of future funding or the company’s ability to meet operating or debt service obligations beyond this limited support.

MSP Recovery, Inc. entered into a Hazel Letter Agreement under its existing working capital credit facility, through which Hazel Partners Holdings LLC agreed in its sole discretion to make a one-time $0.1 million advance primarily for operating expenses. This increases prior advances under the facility’s Operational Collection Floor, which had previously totaled about $6.0 million.

The company emphasizes that this advance is a standalone accommodation and does not reinstate or reopen availability under the facility. Other than this specific amount, no additional funding is available, and Hazel has no commitment to provide future advances. MSP Recovery cautions that the receipt of this $0.1 million should not be seen as evidence of future funding or of its ability to meet ongoing operating or debt service obligations.

MSP Recovery, Inc. disclosed new short-term funding arrangements that provide only limited liquidity. On May 29, 2026, Hazel Partners Holdings LLC made a one-time $0.1 million advance under the company’s discretionary working capital credit facility, increasing prior Operational Collection Floor advances that had totaled about $6.0 million.

The company also entered two letter agreements with VRM MSP Recovery Partners, LLC, including a one-time $0.06 million cash advance and a one-time $0.06 million retention of Primary Series Recovery Proceeds. These funds are earmarked mainly for operating and accounts payable needs and must be repaid promptly upon closing of most future financings, including any debtor-in-possession financing. MSP Recovery emphasized that these are standalone accommodations, create no ongoing funding commitment, and do not provide a basis to expect further liquidity.

MSP Recovery, Inc. disclosed two small one-time financing arrangements and a downgrade in its trading venue. On May 15, 2026, Hazel Partners Holdings LLC agreed, in its sole discretion, to provide a $0.1 million advance under the existing working capital credit facility, funded the same day, but explicitly without reinstating or reopening ongoing availability. The company states it has no rights to and no reasonable basis to expect further Hazel funding.

Also on May 15, 2026, VRM MSP Recovery Partners, LLC agreed to a separate one-time advance of recovery proceeds of $0.1 million, to be repaid from future financing transactions or possible debtor-in-possession financing. On May 19, 2026, OTC Markets Group notified the company that, because it did not timely file its Form 10-K for the year ended December 31, 2025, its Class A common stock will be downgraded from the OTCQB Venture Market to the OTC Pink market effective May 20, 2026, which the company notes could adversely affect liquidity, market price, and access to certain investors.

MSP Recovery, Inc. entered two small, one-time funding arrangements that highlight its constrained liquidity. Through a Hazel Partners Holdings LLC letter agreement, the company received a $0.1 million discretionary advance under its existing working capital credit facility, increasing prior Operational Collection Floor advances of about $6.0 million. The facility remains fully discretionary, provides no committed liquidity, and offers no additional availability beyond this single advance.

The company also signed an Advance Letter with VRM MSP Recovery Partners, LLC, under which VRM provided a separate $0.1 million one-time advance of recovery proceeds to support accounts payable. MSP Recovery must reimburse VRM for this advance and certain prior consents upon closing any future financing, including potential debtor-in-possession financing if it operates under Chapter 11 protection. Both agreements expressly state there is no obligation for further funding and caution that these advances should not be viewed as evidence of future liquidity.

MSP Recovery, Inc. obtained two small, one-time funding arrangements totaling $0.2 million on April 16, 2026, highlighting near-term liquidity pressure. Through its Hazel Partners working capital credit facility, Hazel agreed in its sole discretion to provide a $0.1 million advance primarily for operating expenses, funded under the discretionary Operational Collection Floor.

The company also entered a letter agreement with VRM MSP Recovery Partners, LLC, which provided a one-time advance of recovery proceeds of $0.1 million to support accounts payable, to be reimbursed from any future financing, including potential debtor-in-possession financing if the company operates under Chapter 11 protection. MSP Recovery emphasizes that these advances do not create ongoing access to liquidity, and it has no rights or reasonable basis to expect further funding from Hazel or VRM.

MSP Recovery, Inc. entered two small funding arrangements to access a total of $0.2 million of short-term cash. Through the Hazel Letter Agreement, its existing working capital lender Hazel Partners agreed, in its sole discretion, to a one-time $0.1 million advance under the Operational Collection Floor.

The company notes this advance is a standalone accommodation that does not reopen availability under the working capital credit facility and creates no commitment for future funding, and states it has no rights to, and no reasonable basis to expect, further advances from Hazel. Separately, VRM MSP Recovery Partners agreed to a one-time $0.1 million advance of recovery proceeds to support accounts payable, which must be reimbursed, along with certain prior consents, from any future financing, including potential debtor-in-possession financing if the company operates under Chapter 11 protection.

MSP Recovery, Inc. disclosed two small, one-time funding arrangements that highlight its constrained liquidity. Through a Hazel Partners Holdings LLC working capital facility, Hazel agreed in its sole discretion to fund a $0.1 million advance for operating expenses under the Operational Collection Floor, funded on March 23, 2026. This advance does not reinstate or reopen any broader availability under the facility, and the company states it has no rights to and no reasonable basis to expect further advances from Hazel.

Separately, MSP Recovery entered into a letter agreement with VRM MSP Recovery Partners, LLC, under which VRM made a one-time advance of recovery proceeds of $0.1 million to support accounts payable. The company must reimburse VRM for this advance and certain prior permitted uses of VRM’s recovery proceeds promptly upon closing of any future loan or other financing, including any debtor-in-possession financing if it operates under Chapter 11 protection. Both fundings are explicitly characterized as one-time accommodations and do not provide ongoing or recurring liquidity.

MSP Recovery, Inc. disclosed two small, one-time funding arrangements and key leadership departures. The company obtained a $0.2 million discretionary advance from Hazel Partners Holdings LLC under its working capital credit facility and a separate $0.2 million one-time advance of recovery proceeds from VRM MSP Recovery Partners, LLC, both primarily for operating needs and accounts payable.

The company emphasizes that its Hazel facility remains fully discretionary, provides no committed liquidity, and that it has no rights to and no reasonable basis to expect further advances. It also states that the VRM advance does not imply any obligation for future funding. In addition, director Ophir Sternberg resigned from the board, and Francisco Rivas‑Vasquez resigned as Chief Financial Officer, with both departures described as not due to disagreements over operations, policies, or practices.

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC, its working capital lender, under which Hazel made a one-time discretionary advance of $250,000 on January 26, 2026, to be used primarily for operating expenses. This advance increases the amount previously drawn under the facility’s Operational Collection Floor but is described as a standalone accommodation. The company states that this funding does not reinstate or reopen availability under the working capital credit facility and that, apart from this advance, no additional funding is currently available. MSP Recovery further notes it has no rights to, and no reasonable basis to expect, any further advances, and cautions that this payment should not be seen as a sign of future support or ongoing liquidity.

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC on January 19, 2026 for a one-time advance of $300,000 under its existing working capital credit facility. The funds were provided through the facility’s discretionary Operational Collection Floor and may be used solely for operating expenses.

The advance, funded on January 20, 2026, was subject to conditions under the credit agreement, including no default at the time of funding. MSP Recovery explains that this is a standalone accommodation that does not reinstate or expand availability under the working capital facility, which previously had reached approximately $6.0 million of aggregate advances. The company states that no additional funding is currently available under the facility and that it has no rights to, and no reasonable basis to expect, further advances from Hazel, cautioning that this payment should not be viewed as an indication of ongoing liquidity support.

MSP Recovery, Inc. reported that the delisting of its Class A common stock from the Nasdaq Capital Market and move to the OTCQB triggered a technical Event of Default under its convertible promissory notes with Yorkville, tied to a requirement that the stock remain on a “Primary Market.” The default arose when a 10‑trading‑day period ended on January 6, 2026.

The company owes Yorkville about $3.6 million under these Convertible Notes. If the default were fully enforced, MSP Recovery estimates it could have to make accelerated monthly payments of principal and interest of roughly $1.5 million per month until the notes are repaid.

On January 8, 2026, Yorkville agreed in writing to extend the “Primary Market Period” from 10 trading days to 90 calendar days, through March 22, 2026, so long as MSP Recovery’s stock continues to trade on the OTCQB. Yorkville has not issued any acceleration notice, and the company does not believe this technical default has immediately triggered cross‑defaults under other major debts, though it cautions that future defaults or similar waivers are not assured.

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC under its existing working capital credit facility for a one-time advance of $325,000 to be used solely for operating expenses. This advance, made under the facility’s discretionary Operational Collection Floor, is expected to fund on or before January 9, 2026, subject to conditions including the absence of any default.

The company explains that this $325,000 advance is a standalone accommodation that does not reinstate or reopen any additional availability under the credit facility. Beyond this amount, no further funding is currently available, and the company states it has no rights to, and no reasonable basis to expect, any additional advances. MSP Recovery cautions that this funding should not be viewed as evidence of Hazel’s willingness to provide future liquidity or of the company’s ability to meet operating or debt service obligations beyond this specific advance.

MSP Recovery, Inc. reports that a Nasdaq Hearings Panel has denied its appeal of prior Nasdaq staff determinations, and the company’s Class A common stock will be delisted from the Nasdaq Capital Market for failing to meet continued listing standards. Nasdaq cited MSP Recovery’s stockholders’ equity being below the required $2.5 million minimum and the company’s failure to meet alternative standards tied to a $35 million market value of listed securities or $500,000 in net income from continuing operations. The company also fell out of compliance with Nasdaq’s $1.00-per-share minimum bid price rule. Trading on Nasdaq will be suspended at the open on December 22, 2025, and the company expects its common stock to continue trading on the OTC Markets OTCQB market under the ticker “MSPR.”

MSP Recovery (MSPR) disclosed multiple financing and listing updates. The company and Yorkville cut the SEPA and note Floor Price to $0.50. Under a second supplement, Yorkville agreed to provide up to $3.0 million in additional funding via Convertible Promissory Notes with a 10% original issue discount. On October 28, Yorkville advanced a note with $0.50 million principal, delivering $0.45 million in net proceeds. Notes may convert at the lower of the Fixed Price or 95% of the lowest 5‑day VWAP, but not below $0.50, and remain subject to a 9.99% ownership cap.

The company also amended and restated its Nomura note to reflect $35.4 million outstanding and obtained a limited waiver allowing up to $3.0 million of Yorkville note proceeds to be used for operations. Separately, Nasdaq issued a Staff Delisting Determination stating trading would be suspended on October 31, 2025 absent a successful appeal; MSPR plans to request a hearing and, if delisted, expects trading to continue on the OTCQB Venture Market.

MSP Recovery, Inc. entered a Second Supplemental Agreement with Yorkville that provides up to $3.0 million in additional funding through convertible promissory notes under an existing equity facility, with a 10% original issue discount and per-advance net principal increases capped at $1.0 million.

Yorkville may convert outstanding note balances into common stock at the lower of a fixed price or 95% of the lowest daily VWAP over five trading days, subject to a 9.99% ownership limit. As of October 10, 2025, the floor conversion price was reduced from $1.20 to $1.00 per share. The company also announced that General Counsel Alexandra Plasencia resigned effective October 17, 2025, and will advise through November 30, 2025, with no reported disagreements.

MSP Recovery, Inc. reported that on September 29, 2025, it entered into a material agreement with Yorkville to amend its existing Standby Equity Purchase Agreement (Yorkville SEPA). The change reduces the SEPA Floor Price from $1.60 to $1.20 per share, which is the minimum price at which shares can be sold to Yorkville under that arrangement. All capitalized terms used but not defined follow the meanings in the Yorkville SEPA and related notes.

MSP Recovery reports that it has entered into confidential settlement agreements in ongoing legal matters totaling $2.9 million in cash. Some of this cash will be shared with counterparties under the company’s existing participation and distribution agreements, so not all proceeds will stay with the company.

One preliminary mediated settlement with a property and casualty insurer includes a commitment to provide historical claims data, help reconcile current and future assigned Medicare claims, and make a cash payment to resolve historical claims. A separate confidential settlement was reached with a pharmaceutical defendant in litigation over alleged overpayments. Management notes that these settlements are still being finalized and warns that definitive agreements may not be executed or deliver the expected working capital or operational benefits.

MSP Recovery, Inc. filed an agreement change with its financing partner Yorkville to adjust terms under an existing Standby Equity Purchase Agreement. Effective September 15, 2025, the company and Yorkville agreed to reduce the SEPA “Floor Price” from $2.00 per share to $1.60 per share, as defined in the Yorkville SEPA and related notes. This modification affects the minimum share price at which equity can be issued under that arrangement but does not, by itself, change share counts or authorize new securities.

MSP Recovery, Inc. reports that its subsidiary MSP Recovery, LLC and Cano Health, LLC have entered into a written settlement agreement that fully and finally resolves all disputes between them in the Cano litigation. On September 9, 2025, both sides filed for dismissal with prejudice of all claims and counterclaims, and the court entered these dismissals without any admission of liability or wrongdoing by any party. As part of the settlement, each side expressly retracts and withdraws prior statements and allegations made about the others in connection with the dispute.

The company states it does not expect the dismissal of the Cano litigation to have a material impact on its financial condition or results of operations. It notes that previously disclosed risks tied to this litigation in its annual report for the year ended December 31, 2024 are eliminated as a result of the settlement and dismissal with prejudice.

MSP Recovery, Inc. reported that on September 5, 2025 it entered into a material agreement with Yorkville to amend the pricing terms of its Yorkville SEPA. The parties agreed to reduce the Floor Price under the Yorkville SEPA from $3.50 to $2.00 per share, which lowers the minimum price at which shares can be issued under that arrangement. This change affects how future equity issuances under the Yorkville SEPA may be priced.

MSP Recovery, Inc. approved and implemented a 1-for-7 reverse stock split of its Class A and Class V common stock (with related Class-B/Up‑C units), effective at 11:59 p.m. on September 1, 2025. The Class A shares began trading on a split‑adjusted basis on Nasdaq on September 2, 2025.

The reverse split reduced Class A shares issued and outstanding from approximately 7.2 million to approximately 1.0 million, and reduced Up‑C Units (each tied to a Class V share) from approximately 3.3 million to approximately 0.5 million. Fractional shares were not issued; instead, amounts were rounded up to the nearest whole share, with no cash paid in lieu.

The company states the reverse split is intended to increase the market price per share of Class A Common Stock to help maintain compliance with Nasdaq Marketplace Rule 5550(a)(2). The rights and preferences of the Class A and Class V Common Stock and the Up‑C Units otherwise remain unchanged, and proportional adjustments will be made to the MSPRW and MSPRZ warrants.

MSP Recovery, Inc. reports that a jury in the Menendez Litigation returned a mixed verdict involving the company and its subsidiary. The jury rejected all fraud and misrepresentation theories and found in favor of the company and its CEO, John H. Ruiz, on those claims and on the deceptive and unfair practices claim. However, the jury found that subsidiary MSP Recovery, LLC breached an alleged oral contract and awarded the plaintiffs approximately $12.7 million in damages against the subsidiary, which holds all of the company’s assets.

The court has not yet entered a final judgment, and the defendants are seeking post-trial relief, including a directed verdict, motions to set aside the verdict, and a potential appeal, while also planning to pursue recovery of attorneys’ fees for the company and Mr. Ruiz under Florida law. The company states that the verdict has added uncertainty to its financial condition and prospects and may negatively affect its ability to raise capital or continue as a going concern, and it is continuing to evaluate the impact on its business, results of operations, and financial condition.

MSP Recovery, Inc. reported the results of a Special Meeting of Stockholders held on August 18, 2025. Stockholders representing 6,875,550 common shares, or approximately 74.74% of eligible shares as of the July 11, 2025 record date, participated virtually or by proxy.

Stockholders approved an amendment to the company’s charter to allow a reverse stock split of common stock at a ratio between 1-for-2 and 1-for-7, with the exact ratio to be chosen by the Board of Directors and any other ratios in that range to be abandoned. This proposal passed with 6,640,800 votes for, 231,939 against, and 2,811 abstentions.

They also approved, for purposes of complying with Nasdaq Listing Rule 5635(d), the issuance of Class A common shares to Virage Recovery Master LP upon exercise of the VRM Warrants, with 5,082,916 votes for, 143,965 against, 4,810 abstentions, and 1,643,859 broker non-votes.

MSP Recovery, Inc. confirmed its Standby Equity Purchase Agreement (SEPA) with Yorkville remains active, under which it may sell up to $250.0 million of common stock subject to conditions. Yorkville agreed to provide convertible promissory note advances with aggregate principal of $16.5 million. The filing details five prior notes (combined principal $16.5 million) with net proceeds disclosed for each issuance and a sixth Convertible Note for $0.75 million whose net proceeds will be disbursed in two payments of $0.36 million on August 8 and August 15, 2025.

The Convertible Notes convert at the lower of a Fixed Price or 95% of the lowest daily VWAP during the five trading days before conversion, but not below a $0.50 floor, and conversions are limited to avoid Yorkville exceeding a 9.99% ownership cap. Yorkville may also require issuance of shares to offset outstanding note balances (a "Yorkville Advance"). The company disclosed its 2025 Annual Meeting results: ~6,226,781 shares (≈75.53%) present; three Class III directors were reelected and the ratification vote for Deloitte as auditor passed, while the company previously engaged Baker Tilly to serve as its independent auditor for the remainder of 2025 beginning in Q3.

MSP Recovery (Nasdaq: MSPR) filed an 8-K disclosing new financing actions dated 26 Jun 2025.

• Amended & Restated Nomura promissory note boosts principal to $33.6 million; Nomura also waived up to $3 million of proceeds otherwise payable from the Yorkville SEPA.
• Yorkville issued a $0.8 million convertible note under the existing $250 million Standby Equity Purchase Agreement. Conversion price is the lower of the Fixed Price or 95% of the 5-day VWAP, but not below a $1.00 floor and subject to a 9.99% ownership cap.
• Yorkville may initiate additional share issuances (“Yorkville Advances”) that offset note balances.

The transactions create new debt and potential equity dilution while enhancing near-term liquidity. Shares and notes were issued under the Section 4(a)(2) private-placement exemption.