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Portfolio Update

18 Jun 2015 16:19

RNS Number : 6110Q
Juridica Investments Limited
18 June 2015
 

Juridica Investments Limited

 

("Juridica" or the "Company")

 

 

Portfolio update

 

 

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

 

Case 8008-L has now completed after a denial of further review by the US Supreme Court. The case involved the direct investment of US$26.0 million into an anti-trust price-fixing case that generated gross recoveries of approximately US$89.7 million. As previously disclosed, the trial court dismissed a significant part of the plaintiff's damages against the remaining non-settling defendants in early 2014, and this dismissal was affirmed on appeal. As a result of this negative ruling, the amount of projected future settlements for this case will be removed from the Company's investment valuations. This will have the direct impact of reducing the Company's NAV by approximately US$29.7 million at mid-year 2015.

 

However, the Company has also had several favorable developments that will have positive impacts on the NAV.

 

First, three patent cases have completed thus far this year with positive results. Cases 0108-S, 0209-S and 0409-C have settled in their entirety, resulting in gross recoveries to the Company of US$23.5 million. Cases 0108-S and 0209-S were related investments made by the Company in intellectual property enforcement claims in 2008 and 2009, respectively. Juridica's total investment in both cases since its initial commitment was US$11.6 million. The combined profit on these correlated investments is about US$1.5 million. Case 0409-C was also an investment made by the Company in intellectual property enforcement claims in 2009. It also settled in line with expectations after a favorable trial result. Juridica's total investment in Case 0409-C since its initial commitment was US$4.56 million. The profit attributable to the Company is approximately US$5.8 million, which was previously realized in the accounts.

 

In addition, a new investment made by the Company in multiple intellectual property enforcement claims in May 2015, Case 114107, returned the Company's full investment of US$1.3 million following a recent settlement with one defendant. The Company's Investment Manager expects additional settlements from this Case's claims within the next 12 to 24 months.

 

Furthermore, Juridica has also invested in a new case involving a positive jury verdict that was reversed by the trial court. An appellate decision is expected before the current year end.

 

Finally, Case 5009-S which involves the alleged theft of trade secrets and has claimed damages in excess of US$500 million has been set for trial on 20 October 2015. The Company is entitled to approximately 28% of the first US$100 million of any award or settlement, and approximately 26% above those amounts. The current NAV contains only US$5.8 million for this case based on the low end of the range of possible settlement values. A successful trial verdict and damage award will have a significant positive impact on NAV.

 

The Company expects to publish its accounts and an updated NAV for its portfolio as soon as possible in the third quarter of 2015. The cumulative effect of the developments detailed in this announcement may result in an estimated reduction to the NAV of as much as approximately US$26.8 million (approximately 15.6 pence per ordinary share). However, the ultimate NAV calculation for the first six months of 2015 will be determined by the net of all positive and negative changes in fair value of the entire portfolio. The Company expects other positive developments from its case portfolio prior to year end which may further mitigate the negative impact of this development in 8008-L.

 

Commenting on the portfolio's recent results, Juridica's Chairman, Lord Brennan, said:

 

"As previously guided the Company's portfolio of investments has continued to mature towards resolutions, with a further US$23.5 million of recoveries. At the same time it is disappointing to see one of our investments not achieve its full potential, despite delivering gross recoveries of approximately US$89.7 million.

 

Remarking on the portfolio's near-term potential, Richard Fields, Chairman and CEO of the Manager, Juridica Asset Management, also said:

 

"The Company's portfolio includes several large cases that have the potential to exceed the Investment Manager's expectations reflected in the current NAV, including a large anti-trust case that is expected to go to trial late this year or early next, and a statutory case that is set for a damages trial on part of its claims in August of this year. We continue to see exciting opportunities to deploy the fund's capital in assets that have the potential to generate solid returns for shareholders."

 

 

- Ends -

 

 

This document contains forward looking statements, which are based on Juridica Asset Management Limited's (JAML) current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially. Each forward looking statement speaks only as of the date of this announcement. Except as required by the AIM Rules, the London Stock Exchange or otherwise by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's or JAML's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

 

 

For further information contact:

 

Juridica Asset Management Limited

Richard W. Fields

 

+1 (866) 443 1080

 

Cenkos Securities PLC - Nominated Adviser and Broker

Nicholas Wells

Ian Soanes

 

+44 (0) 20 7397 8900

Investec Bank PLC - Joint Broker

Darren Vickers/ Jeremy Ellis

 

+44 (0) 20 7597 4000

Peel Hunt LLP - Joint Broker

Guy Wiehahn

 

+44 (0) 20 7418 8900

 

Bell Pottinger

Olly Scott

+44 (0) 20 3772 2500

 

 

About Juridica Investments Limited

 

Juridica Investments is a leading provider of strategic capital to the business community and the legal markets for corporate claims. It invests directly and indirectly in a diversified portfolio of corporate claims in litigation and arbitration. Juridica is one of the premier sources of value-added and direct financing for large business claims in the United States and one of the leading sources in the United Kingdom.

 

The Company's clients are Fortune 1000 companies, FT Global 500 companies, inventors, major universities, and the leading law firms that represent them. Juridica only accepts cases that have already been carefully vetted and undertaken by leading lawyers.

 

Juridica's capital enables the legal system to better address business claims. It does not invest in speculative claims or claims that do not demonstrate economic value and clear merits. Juridica invests only in business claims, and does not invest in class actions, personal injury, product liability, or mass tort claims. Juridica's investment strategy provides business clients with financial choices that reduce risk and assist in maximizing claim value.

 

The Company's goal is to provide business clients with financial choices that reduce risk and assist in maximising claim value.

 

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. It was the pioneer in alternative litigation financing and the first closed-end fund of its kind ever listed on AIM, a market operated by the London Stock Exchange (AIM: JIL.L).

 

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

 

http://www.juridicainvestments.com 

 

 

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