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MSP Recovery (MSPR) draws $210,000 from Hazel and VRM as working capital facility sits exhausted

$210,000 in four one-time advances is the net new cash MSP Recovery, Inc. has secured since early August, per an 8-K with an event date of August 4, 2026. Hazel Partners Holdings LLC contributed two tranches totaling $110,000; VRM MSP…

By Lucia Moretti·Aug 15, 2026·2 min read·regulatory·MSPR

Key takeaways

  • MSP Recovery (MSPR) secured $210,000 in four one-time advances since early August 2026, disclosed in an 8-K with an event date of August 4, 2026.
  • Hazel Partners Holdings LLC provided two tranches totaling $110,000 for operating expenses, while VRM MSP Recovery Partners provided two $50,000 tranches totaling $100,000 restricted to payroll and certain IT expenses.
  • Hazel's $110,000 pushed aggregate advances under the Operational Collection Floor above the roughly $6.0 million level that had already exhausted the facility's capacity as of the Q3-2025 10-Q.
  • The company states it has no rights to and no reasonable basis to expect any further advances, as Hazel retains sole discretion with no funding commitment.
  • After the four advances, no funding remains available under the Working Capital Credit Facility.

$210,000 in four one-time advances is the net new cash MSP Recovery, Inc. has secured since early August, per an 8-K with an event date of August 4, 2026. Hazel Partners Holdings LLC contributed two tranches totaling $110,000; VRM MSP Recovery Partners, LLC contributed two totaling $100,000. Each draw carries a designated use and a company caution that it implies no further funding commitment.

Date funded Lender Amount Designated use
Aug 3, 2026 VRM $50,000 Payroll / IT expenses
Aug 6, 2026 Hazel $50,000 Operating expenses
Aug 12, 2026 VRM $50,000 Payroll / IT expenses
Aug 13, 2026 Hazel $60,000 Operating expenses
Total $210,000

Facility ceiling raised, availability unchanged

MSP Recovery is a Delaware corporation headquartered in Miami, Florida. Its Class A common stock trades on OTC Market Group under the ticker MSPR, alongside two series of redeemable warrants (MSPRW, MSPRZ), each structured as a lot of 4,375 warrants exercisable for one common share.

Hazel's $110,000 flows through the Operational Collection Floor, the discretionary funding mechanism under MSP Recovery's existing working capital credit facility. The facility does not provide committed liquidity and does not establish a borrowing base. As of the company's Q3-2025 Form 10-Q, aggregate advances under the floor had reached approximately $6.0 million, at which point no remaining capacity existed. The two new Hazel draws push that aggregate above $6.0 million; each was conditioned on the absence of any event of default at the time of funding. Both are standalone accommodations that do not reinstate or otherwise reopen availability under the facility.

The filing offers no softening on liquidity. Hazel retains sole discretion and holds no commitment to advance further amounts. MSP Recovery states it has no rights to and no reasonable basis to expect any additional advances. The company cautions that receipt of these draws should not be viewed as evidence of Hazel's future willingness to fund or of MSPR's ability to meet operating or debt service obligations beyond the $210,000 in hand.

VRM's two $50,000 tranches, funded August 3 and August 12, are advances made under two addenda to a July 8, 2026 letter agreement. Both are restricted to payroll and certain IT expenses. VRM reserved all rights under its applicable limited liability company agreement.

After these four advances, no funding remains available under the Working Capital Credit Facility.

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Source: sec.gov
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Frequently asked

How much money did MSP Recovery raise and from whom?

MSP Recovery raised $210,000 total, with $110,000 from Hazel Partners Holdings LLC and $100,000 from VRM MSP Recovery Partners, LLC.

What were the funds designated to be used for?

Hazel's advances were designated for operating expenses, while VRM's two $50,000 tranches were restricted to payroll and certain IT expenses.

Does this funding mean more money is available to MSP Recovery?

No; the company cautions each draw implies no further funding commitment, Hazel retains sole discretion, and after these advances no funding remains available under the Working Capital Credit Facility.

Where does MSP Recovery's stock trade?

Its Class A common stock trades on OTC Market Group under the ticker MSPR, alongside two series of redeemable warrants, MSPRW and MSPRZ.

What is the Operational Collection Floor?

It is the discretionary funding mechanism under MSP Recovery's existing working capital credit facility, which provides no committed liquidity and no borrowing base, and had reached roughly $6.0 million in aggregate advances with no remaining capacity as of Q3-2025.