Litigation Cap. Regulatory News (LIT)

1 November 2019

Litigation Capital Management Limited

("LCM" or the "Company")

 Incentive Awards

Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, announces that it has today granted a number of incentive awards to employees of the Company in the form of shares and/or options to be issued pursuant to various incentive schemes.

The following table details the quantum of awards granted, the recipients and under which scheme. Subject to the terms of the various incentive schemes, participants may nominate another person to be issued the awards.

The differing incentive schemes of the Company are detailed below.

Joint share ownership plan ("JSOP")

The Company has in place a JSOP. Ordinary Shares in the capital of the Company ("Ordinary Shares") issued under the JSOP ("JSOP Shares") are held by the LCM Employee Benefit Trust ("EBT"), which was established for this purpose. beneficial interest in JSOP Shares is jointly held between the relevant participant and the EBT. Under the JSOP rules, it has been agreed that no voting rights will be exercised on the JSOP Shares prior to their vesting date.

A limited recourse loan agreement will be entered into between the Company and both the EBT and recipients of JSOP Shares. The loan will be for a term of 10 years and an amount which represents the market value for the recipient's interest in the JSOP.

As part of a Long Term Incentive Plan (LTIP), Nicholas Rowles-Davies JSOP award will vest on the date three years post award, subject to continued employment and a performance condition of a share price target of 175 pence being achieved at any time during the vesting period. In addition, the JSOP award is subject to malus and clawback provisions. The award vests in full in the event of a change of control at any time.

In addition, Nicholas Rowles-Davies was granted a JSOP award on 8 March 2019 to allow him to participate in the growth of 4 per cent. of LCM's share price appreciation over the share capital on issue immediately post admission to AIM. The grant on 8 March 2019 only gave Nicholas Rowles-Davies a participation in 3.85 per cent. and to address that shortfall, an additional 181,147 Ordinary Shares will be subscribed by the EBT on the same terms as the original award. Please refer to the Company's RNS on 8 March 2019 titled JSOP Award for additional details.

Pursuant to the JSOP rules, recipients will benefit from the growth in value of each JSOP Share from the LCM share price at the point of issue subject to the conditions outlined above. 

LCM Loan Share Plan ("LSP")

The Company has in place a LSP. Ordinary Shares issued to recipients under the LSP ("LSP Shares") generally rank equally with all existing shares from the date of issue.

The LSP Shares are issued to the recipient at market value and due to the vesting conditions attached to them (e.g. continuous employment conditions and share price hurdles) represent a share based payment arrangement.

The LSP awards, unless stated otherwise, will vest over a three year period in four equal tranches from the date of issue. In addition, the LSP awards are subject to malus and clawback provisions. The awards vests in full in the event of a change of control at any time.

As part of a Long Term Incentive Plan (LTIP), Patrick Moloney has also been granted an additional LSP award that will vest three years from the date of issue subject to continued employment and a performance condition of a share price of 175 pence being achieved at any time during the vesting period.

Company share ownership plan ("CSOP")

The Company has in place a CSOP. Options over Ordinary Shares ("Options") are issued to recipients under the CSOP ("CSOP Options") at an exercise price being the share price on the day prior to close, subject to continued employment over the three year period and a performance condition of a share price target of 175 pence being achieved at any time during the three year period.

The key benefits of the incentive awards as set out above are:

·; a real interest in shares for the recipients, which encourages strong individual and Company performance by aligning the interests of the recipient with those of the Company and other shareholders;

·; provided there is a strong expectation of growth, the structures lend themselves well to the Company's commercial proposal of allowing recipients to enjoy the growth in value of the issued share capital of LCM.

Application will be made for the 2,002,700 ordinary shares to be admitted to trading on AIM. It is expected that admission will take place on 11 November 2019. Following the allotment and issue, the Company's issued share capital consists of 115,038,146 ordinary shares. The Company does not hold any shares in Treasury, as such the total number of shares in issue with voting rights is 115,038,146.

The above figure of 115,038,146 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules. 

CONTACTS

NOTES TO EDITORS

 About LCM:

Litigation Capital Management ("LCM") is a leading international provider of litigation financing solutions. This includes single-case and portfolios across; class actions, commercial claims, claims arising out of insolvency and international arbitration. LCM has an unparalleled track record, driven by effective project selection, active project management and robust risk management. Headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT.

www.lcmfinance.com

 The following notifications are intended to satisfy the Company's obligations under Article 19(3) of EU Regulation No 596/2014 (the Market Abuse Regulation).

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them