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Chesswood To Enter The Litigation Finance Industry | |
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June 04, 2011 Case Funding to Join Chesswood's Specialty Finance Portfolio. Chesswood Group Limited ("Chesswood") is pleased to announce that it has signed a binding agreement with the shareholders of a New York based litigation finance company (the "Current Company"), that will, subject to closing, launch Case Funding Inc. ("Case Funding") as a provider of litigation financing to plaintiffs and attorneys throughout the United States. The entire team of the Current Company will join Case Funding and will combine their litigation finance experience with Chesswood's specialty finance expertise and financial resources, to build a growth-oriented litigation finance business. Chesswood has committed to providing at least US$6 million in capital to Case Funding, from its existing cash resources. "The litigation finance market is a large underserved market that has been growing rapidly over the last decade" said Barry Shafran, Chesswood's President and CEO. "The industry expertise of Case Funding's team coupled with our risk management discipline, offers Chesswood a great opportunity to expand its portfolio in specialty finance and enjoy healthy risk-adjusted returns" added Shafran. The transaction is expected to close before June 30, 2011. The agreement provides for a purchase price of US$1.0 million, of which US$950,000 will be satisfied through the issuance to the vendors of 119,647 Chesswood common shares based on Chesswood's market average trading price, volume adjusted for the 10 days prior to execution of the Agreement, of $7.94. The agreement also provides for the future conditional acquisition by Chesswood of the Current Company, based on its net cash position following certain wind-down milestones being met, for a maximum purchase price of U.S.$1.8 million to be satisfied through the issuance to the vendors of Chesswood common shares at the same issue price used for the purchase of Case Funding. Source: http://www.1888pressrelease.com/chesswood-to-enter-the-litigation-finance-industry-pr-308155.html |
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