LifeWallet Confirms Closing of Previously Announced Transactions and Continued Development of Revenue Streams Generated from Legal Industry

CORAL GABLES, Fla., March 29, 2023 (GLOBE NEWSWIRE) --  MSP Recovery, Inc. d/b/a LifeWallet (NASDAQ: LIFW) (“LifeWallet” or “LIFW” or the “Company”), today announced that, as projected, it has now finalized and entered into definitive agreements with respect to with Hazel Partners Holdings, LLC for the purchase and sale of certain recovery rights by the Company, as well as received an additional tranche of funding pursuant to the credit agreement, which will provide the Company with an additional $15 million in working capital. Specifically, the Company is selling $150 million in claim recovery rights that it acquired previously from an assignor.   The $150 million represents a dollar figure that is significantly above the amount the Company previously paid for these recovery rights. In a separate transaction, the Company is also purchasing for $390 million, certain claim recovery rights. This dollar figure is for a significantly lower price than the Paid Amount (as defined in prior SEC filings) for specific case funnels, i.e., the identified recovery rights. The Company has previously reported recovering on similar accident-related litigation-based claims, 1st party demand letters, 3rd party demand letters, and case and lien recoveries at recovery multiples of 2.1x, 1.8x, 4.4x, and 1.7x, respectively, although the total size of the settlement amounts for which these recovery multiples relate were for significantly smaller amounts and in respect to limited portions of the case funnel.

As previously announced, the Company secured a credit agreement providing the Company with $48 million worth of working capital, the funding of which is subject to certain milestones. Detailed financials relating to the transactions will be reflected in the Company’s fiscal first quarter 2023 financial results in a few months.

“Collectively, these transactions demonstrate the significant value in our assets and the future of our company,” said CEO and founder John H. Ruiz.

The Company also announced today that the of its national lawyer referral service on the LifeWallet platform is already set to recognize revenue of up to $1 million per month (if the Company achieves certain contractual thresholds) from an agreement with lawyers seeking to participate and have access to this innovative service. In addition to patients, medical providers and healthcare payers, the LifeWallet application will also provide resources for attorneys and their clients – facilitating the processing of claims by lawyers that ultimately may also represent beneficiaries who have suffered physical or mental injuries for which Medicare or Medicaid has paid.

On March 22, 2023, affecting 4.4 million people against the largest energy provider in the state of Florida, Florida Power & Light (“FPL”). The Third District Court of Appeal relied on and expressly cited those services in affirming the decision, including the fact that the Company’s Chief Information Officer Christopher Miranda testified and corroborated the plaintiffs’ ability to assess FPL’s data regarding the class action. As a result, the court concluded that “plaintiffs can use FPL’s data to prove FPL’s liability for the entire class.”

“The systems we have developed are a great asset to law firms and lawyers across the country as they seek to process and prosecute claims,” said Ruiz. “A system designed by lawyers for lawyers. We expect to continue developing these revenue streams and to see continued interest.”

About LifeWallet

Founded in 2014 as MSP Recovery, LifeWallet 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 from responsible parties. LifeWallet provides comprehensive solutions for multiple industries including healthcare, legal, education, and sports NIL, while innovating technologies to help save lives. For more information, visit: investor.lifewallet.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including for example expected terms of the purchase, related financing, or sale of claims pursuant to the transactions described herein, which is not finalized and subject to negotiation and related risks. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance or results and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by MSP Recovery herein speaks only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for MSP to predict or identify all such events or how they may affect it. MSP has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, risks associated with the negotiation of the purchase and sale of assets; and those other factors included in MSP’s Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K, and other reports filed by it with the SEC. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995.

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