TIDMJIL
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 +1 (866) 443
Richard W. Fields 1080
Cenkos Securities PLC - Nominated
Adviser and Broker
Nicholas Wells +44 (0) 20 7397
Ian Soanes 8900
Investec Bank PLC - Joint Broker +44 (0) 20 7597
Darren Vickers/ Jeremy Ellis 4000
Peel Hunt LLP - Joint Broker +44 (0) 20 7418
Guy Wiehahn 8900
Bell Pottinger +44 (0) 20 3772
Olly Scott 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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