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31 January 2017
ASX Announcement (ASX: JKL)
Market Update
The half-yearly results of JustKapital Limited (“JKL” or “Group”) are expected to be released in the
week commencing 20 February 2017. A full market update on the 4 business units of the Group will
be provided with the half-yearly results.
As announced on 12 January 2017, Longford Capital LLC (Longford) reimbursed JKL $2.5M on 12
January 2017, representing 50% of the total amounts invested by JKL in the portfolio of 5 cases
purchased in July 2016.
These funds are not included in the attached Appendix 4C. Accordingly the Group’s cash was $4.4M
in January following the receipt of these funds. Undrawn financing facilities of the Group are $10M.
Litigation Funding Division – Case Updates
The principle activities of this division is the funding and management of litigation.
JustKapital has been advised by WorleyParsons Limited (“WOR”) that it intends to appeal the recent
decision made by the Federal Court of Australia which dismissed its interlocutory application to
strike out parts of the claim funded by JustKapital. JustKapital will keep the market informed of
developments in this case as they are made by the Court.
In addition, the trial in the United States concerning a patent infringement claim, has been moved by
the Court to 6 March 2017. It is expected this case will be completed, either by settlement or
judgment, by mid-March 2017.
Both of the above matters are funded jointly by JustKapital and Longford Capital LLC.
The Group currently has 8 cases which are funded and under management. An overview of these
cases is attached as Appendix A. Due to the nature of litigation it is not possible to predict the timing
of the completion of a case with accuracy, however, the Group continues to expect that at least one
case will conclude in FY2017.
Disbursement Funding Division
This division funds the out of pocket expenses of legal practitioners and incorporates the Macquarie
Medico Legal business (MML) which operates mainly in the personal injury area. MML also procures
funded expert medical reports for lawyers and their clients.
Gross revenue in the disbursement funding division for the half year was $8.3M growing 22% (year
on year) (please note JKL purchased this business on 22 January 2016).
Suite 2, Level 16, 56 Pitt Street, Sydney NSW 2000
T +61 (0) 2 9696 0220 | E [email protected] | W justkapital.com.au
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Insurance Broking Division
This division provides insurance broking services for adverse costs order insurance. This division was
established during the September quarter. Since establishing this division it has been commissioned
to place 5 policies.
Short Term Finance Division
This division provides short term working capital finance to law firms. During the half the Group has
committed $1.3M in short term finance (agreements with a duration of less than 12 months),
generating $0.13M in interest income.
Authorised by:
Diane Jones
Chief Operating Officer and Company Secretary
For media enquiries:
Michael Mullane
Director
Cannings Corporate Communications
Tel: +61 0414 590 296
For investor enquiries:
Diane Jones
Chief Operating Officer and Company Secretary
JustKapital Limited
Tel: +61 2 9696 0220
Suite 2, Level 16, 56 Pitt Street, Sydney NSW 2000
T +61 (0) 2 9696 0220 | E [email protected] | W justkapital.com.au
For personal use only
Litigation Funding Division - Case Portfolio Update
Appendix A as Referred to in Market Update 31 January 2017
TYPE OF CLAIM
DEFFENDENT
GROSS CLAIM
VALUE*
COMMENTS
A. Breaches of Corporations Act &
Continuous Disclosure Laws
Top 200 ASX listed Company
$300m
Judgment on strike out application was successful, however, notice of its appeal has been received. There is a co
funding agreement in place.
B. Patent Infringement US patent
Global Software Company
$350m
All interlocutory motions and ancillary actions have been found in our client’s favour. Trial set to commence in
March 2017. There is a co funding agreement in place.
C. Breach of Fiduciary Duty
ASX Listed Trustee
$34m
Trial to commence on 4 September 2017. A Mediation is expected by April 2017. There is a co funding agreement in
place.
D. Breach of Fiduciary Duty
ASX Listed Trustee
$17m
Proceedings yet to be filed. There is a co funding agreement in place.
E. Shareholder Class Action
Directors and Advisors
$30m
Proceedings commenced as an open class. Strike out application has been dismissed. Expect trial date in FY2018.
Claim size could reach $90m. There is a co funding agreement in place.
F. Breach of Fiduciary Duty
ASX Listed Trustee
$100m
The trial date of 3 July 2017 has been vacated. A new trial date has not yet been set but is expected to be set in
FY2018. There is a co funding agreement in place.
G. Breach of Fiduciary Duty
ASX Listed Trustee
$50m
Trial date has been moved to 18 March 2018. Mediation expected by June 2017. There is a co funding agreement in
place.
H. Breach of Contact & Fiduciary Duty
Big Four Bank
$1 billion
Proceedings commenced as an open class. This matter is in its early stages. Claims totaling $500M have signed
funding agreements to date.
$1.9 billion
Does not include contingently funded cases
Total Funded 8 cases
*Gross claim value is the amount being claimed by JustKapital’s clients. It is not the estimated return to the Group from the case if it is successful. JustKapital expects to receive between 25%-50% of the settlement amount or judgment
awarded, which could differ substantially from the gross claim value.
The Group has contingently funded a case against another ASX listed entity which is not included in the above. The gross claim value could be in excess of $800m if this case proceeds.
The Group has 3 additional cases in the final stages of due diligence.
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