Juridica Investments Regulatory News (JIL)

22 Apr 2008 07:00

Juridica Investments Limited22 April 2008 Juridica Investments Limited ("JIL" or the "Company") Trading Statement 22 April 2008 This statement provides a trading update for Juridica Investments Limited forthe period ended 31 March 2008 and provides an update on the Company's reportingtimetable. The board of JIL is pleased to report encouraging progress. The Company hasinvested in one instance and agreed to invest in two instances, a maximum totalof $23.35 million in three cases. In addition, Juridica Management Limited ("JML" or the "Manager") has reported that the market for JIL's involvement inlitigation is significant and JML is confident that the capital of the Companywill be invested within the time frame anticipated in the Admission Document orslightly ahead of schedule. Investments At 31 March 2008, JIL had made three investments: • Case 0108-S, an agreement to finance litigation in the US against a publicly-listed company whose major product is allegedly infringing several patents of the plaintiff; • Case 0208-G, funding to a law firm in early recovery of its contingency fee from a settled case in the US; and • Case 0308-R, a commitment to fund the cost of litigating a shareholder/ partnership dispute between two hedge fund managers in the United Kingdom and an offshore jurisdiction. Due diligence costs to date have been less than 1 per cent. of funds that may becommitted to the three cases identified above, including due diligence conductedon an investment that JIL was advised by JML not to close. Case 0108-S Under the terms of JIL's agreement with the patent holder, JIL has agreed tofund up to $4.35 million of legal fees and $2 million of costs to prosecutealleged infringement of a set of patents. JIL will be entitled to 20 per cent.of the first $100 million in proceeds from the initial litigation of the case.In addition, JIL will be entitled to between 15 and 20 per cent. of anyadditional proceeds of the initial litigation depending on the the total valueand timing of the settlement or judgment. Furthermore, JIL will also beentitled to between 15 and 20 per cent. of any ongoing licence revenue generatedby the patents. It is anticipated that the funds will be disbursed over 1-3years. Case 0208-G JIL has loaned a US law firm $12 million. Under the terms of the loan, JIL isentitled to a 25 per cent. rate of interest, compounded annually, subject to aminimum profit of $1.75 million. Repayment of the loan is contingent uponcollection of a contingency fee in an already settled case. The payment of thefee to the law firm is contingent upon confirmation of a plan of reorganisationin a US bankruptcy case. Case 0308-R A manager of a fund of hedge funds is alleged to have been disenfranchised byhis business partner. JIL has agreed to provide up to $5 million in order forthe plaintiff to pursue litigation in the UK as well as defend a related claimin an offshore jurisdiction. Under the terms of its agreement, JIL will receivebetween 20 per cent. and 40 per cent. of the total value of the settlement orjudgment, depending on the amount disbursed by JIL and aggregate value of thesettlement or judgment. This case is set for trial in the summer of 2008. Litigation market JML has seen encouraging developments in the market for litigation finance. Inaddition to the established market in Australia and Europe, there is increasingevidence of a market for third party funding developing in the United Kingdomand robust interest in JIL's offering in the United States. JML is consistentlyreceiving and evaluating a large volume of enquires from the United States,Britain, Canada and Australia from a diverse group of sources. The Manager hasencountered a number of traditional sources of capital who are either providingfinance for litigation or offsetting litigation risk, in addition to alternativeasset managers examining the market. There is also significant activity in theUS intellectual property market - participants are acquiring patents incompetitive auctions with the express purpose of monetising them via licensingor litigation against parties allegedly infringing the patents. Reporting timetable JIL will report to a 31 December year end. Accordingly, the Company willrelease unaudited interim accounts for the period ended 30 June 2008 by 30September 2008 and audited report and accounts for the period from 21 December2007 to 31 December 2008 by 30 April 2009. Commenting on trading since launch Lord (Dan) Brennan, chairman of JIL, said "Iam delighted to report on progress to date. There is evidence of the litigationmarket developing rapidly and JML is constructing the beginnings of aninteresting and well-diversified portfolio of litigation." For further information, please contact: Richard W. Fields Stephen Keys/Camilla Hume Juridica Management Limited Cenkos Securities plc +1 (866) 443-1080 or +44 788 755 0358 +44 (0) 20 7397 8900 This information is provided by RNS The company news service from the London Stock Exchange