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Legion Capital Increases Size of Reg A+ Offering Following Sellout

Legion Capital Corporation (OTCQB: LGCP), a fintech enabled private equity lender, has increased the size of its Regulation A+ offering.

Legion Capital Corporation (OTCQB: LGCP), a fintech enabled private equity lender, has increased the size of its Regulation A+ offering from $40 million to $75 million after selling out its original offering, the company said.

Legion’s Reg A+ offering, which is available to both accredited and non-accredited investors, is comprised of short-term, corporate bonds with maturities of one, two, and three years, as well as redeemable preferred stock. The original $40 million offering was qualified by the Securities and Exchange Commission in April 2020 and was re-qualified earlier this month.

“The independent broker-dealer community has enthusiastically embraced Legion’s business model and investment offerings,” said Jason Plucinak, vice president of corporate finance, who leads broker-dealer and registered investment advisor distribution. “As a result, we have now sold out our original $40 million offering and are increasing that offering to $75 million, to meet both ongoing demand for our offerings as well as our plans to continue the growth of our lending business and footprint.”

Plucinak added that the focus “will remain on prudent capital deployment with secured and well collateralized first position real estate development loans in the greater Central Florida area.”

The bonds are being offered with one, two, and three-year maturities and pay monthly coupons of 4.5 percent, 5.75 percent, and 6.5 percent per year, respectively. The bonds are priced at $1,000 each, have a minimum purchase of $10,000, and include an automatic renewal feature.

According to a recent SEC filing, one-year bonds will include a 1.5 percent sales commission and a 0.50 percent managing broker-dealer fee. Two-year bonds will include a 4.0 percent sales commission and a 0.75 percent managing broker-dealer fee. Three-year bonds will include a 5.25 percent sales commission and a 1.0 percent managing broker-dealer fee.

The preferred shares have a 7.5 percent annual dividend rate, paid monthly, and have an annual profit participation payment to shareholders. The shares have a redeemable feature and a declining redemption fee schedule that goes from 12 percent in year-one to zero percent after the fourth year.

The preferred shares are priced at $1,000 each and include a 7.0 percent sales commission and 1.25 percent broker-dealer fee. The minimum investment is $10,000.

Sequence Financial Specialists LLC serves as managing broker-dealer.

Legion Capital Corporation provides financing for small- and medium-sized businesses and real estate developers. The firm provides bridge funding, acquisition finance, development, and growth capital.

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