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News: JKL Justkapital Litigation Partners enters into a co-funding agreement, page-7

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madanglighthouse

412 Posts.

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13/01/17

10:55

Post #: 21870662
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Originally posted by jace.h ↑

The key takeaways from today's announcement were:

1. Co-funding of the portfolio of cases increases the likelihood the company will have enough funds to fund all their current cases, while giving up some up and downside risk. Since JKL has a longstanding co-funding relationship with Longford, the co-funded of this portfolio is not surprising. Good risk management for a young funder and at least Longford agrees with JKL's backing of these cases.

2. The 11 July 2016 announcement about the portfolio of cases states that there is sharing of the free carry above $4m with the seller, so the upside on the portfolio of cases may be lower than other cases that are only co-funded. The cost of funding cases that have already been partially funded and are well progressed.

3. Previous WP class action was knocked out due to professional/ethical issues around the litigator, rather than the merits of their case. ACA's class action, co-funded by JKL, do not suffer the same issues and was more than likely to go ahead. This just confirms that.

4. US patent infringement case is the interesting one indeed.

All round a nice announcement, but no surprises and they haven't won anything yet.

Don't know why but I feel a few market participants became aware of the announcement early and started buying up before the announcement. And then the announcement came out and some traders saw the $230m figure, recent price action and started to pile in. If you read the announcement, they just lost half of the upside on the portfolio of cases!

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JKL Price at posting: 25.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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News: JKL Justkapital Litigation Partners enters into a co-funding agreement, page-7

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