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Portfolio Update

9 Jun 2011 07:00

RNS Number : 0701I
Juridica Investments Limited
09 June 2011
 



Juridica Investments Limited

 

('Juridica' or the 'Company')

 

 

Portfolio update

 

Juridica, a leading provider of strategic capital to both businesses and the legal markets for corporate claims, provides the following portfolio update.

 

At the time of the Company's full year results statement on 9 May 2011 it outlined its expectations for further activity in the portfolio over the coming six to 18 months. Juridica subsequently reported a favourable resolution to Case 6509-A which generated a US$4.5 million return for the Company, delivering an internal rate of return of 54% on an initial investment of US$2.4 million.

 

The Company is pleased to report that two further investments, Case 1410 and Case 1610, have approached the closing stages of their judicial processes.

 

Case 1410, which involves litigation relating to claims for breach of fiduciary duty, misappropriation of trade secrets, defamation and interference with a business opportunity, has completed a bench trial and post-trial briefing is underway. Juridica's total investment is approximately US$3.9 million, for which the Company has acquired a substantial position in the entity entitled to proceeds from the litigation. Gross proceeds from this litigation will be reduced by attorneys' fees and expenses, corporate taxes and certain other deductions such that the Company's share of gross proceeds will likely be between 11% and 24%. Barring settlement, the Court's decision is expected in the third or fourth quarter of 2011. Plaintiffs in the case are seeking over US$250 million in compensatory damages excluding additional claims for punitive damages and interest.

 

Case 1610, which involves an arbitration relating to claims for breach of contract, fraud, commercial disparagement and related tort and statutory claims, has completed its hearing and post-hearing briefs are being filed. The Company's total investment is up to US$4 million, for which it is entitled to approximately 33% of the net proceeds after return of Juridica's investment and payment of certain legal fees and expenses. Barring settlement, the Arbitrators' decision is expected in the third quarter of 2011. The Plaintiff in the case is seeking over US$85 million in compensatory damages, excluding additional claims for punitive damages and interest.

 

The above disclosure is being made to ensure shareholders are aware that material events are possible in the near-term. No assurance can be given that the above noted investments will actually come to full completion in the near-term or that the investments will generate profits when completed.

 

Richard W. Fields, Chairman and Chief Executive of Juridica Capital Management, the Investment Manager, said: "We approach our investments extremely conservatively and are very pleased that these two cases have successfully reached an advanced stage. Looking at the progress taking place across the portfolio we anticipate an exciting second half of the year, in which we believe certain investments will come to conclusion and have the potential to generate significant returns."

 

- Ends -

 

 

 For more information please contact:

 

Juridica Capital Management Limited

Richard Fields, Chief Executive

 

 

+1 866 443 1080

Cenkos Securities plc

(Nominated Adviser and Broker)

Nicholas Wells

Camilla Hume

 

 

+44 (0)20 7397 8900

 

Pelham Bell Pottinger

David Rydell

Olly Scott

 

 

+44 (0)20 7861 3232

 

 

 

About Juridica

Juridica is a leading provider of capital to the business community and the legal market. It invests directly and indirectly in a diversified portfolio of commercial claims and disputes. The Company's objective is to be the premier source of value-added and direct financing or large business claims, especially in the United States and the United Kingdom.

 

Our clients are Fortune 1000 companies, FT Global 500 companies, small businesses, inventors, major universities and the leading law firms that represent them. Juridica accepts only cases that have already been carefully vetted and accepted by qualified lawyers, does not invest in speculative cases and accepts only a small fraction of the cases reviewed.

 

The Company focuses exclusively on business-to-business related claim investments. It does not invest in shareholder class actions, personal injury, product liability, or mass tort claims.

 

Juridica was established on 21 December 2007 as a limited liability, closed-ended investment company registered in Guernsey. It has over US$200 million of assets under management and is listed on AIM, a market operated by the London Stock Exchange (AIM: JIL).

 

The Company has appointed Juridica Capital Management Limited as its exclusive investment manager to locate, select and manage direct and indirect investments in cases, claims and disputes.

 

For more information visit Juridica at http://www.juridicainvestments.com

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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