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Litigation Capital Management (LCM) Limited (AIM:LIT), announces its full year results for the period ended 30 June 2019.

Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, today announces its audited financial results for the year ended 30 June 2019.

Company highlights

▪ Strong performance and significant operational expansion to achieve global platform covering Australia, EMEA and Asia Pacific

– Establishment of London office and recruitment of highly experienced team led by Nick Rowles-Davies, Executive Vice Chairman, to service the EMEA region

– Establishment of Singapore office and recruitment of highly experienced team leader to service the growth markets of Singapore and Hong Kong

▪ Increased investment pool and achieved significant diversification in our portfolio and pipeline by geography and jurisdiction, as well as sector and capital commitment, whilst maintaining discipline

▪ Funded two corporate portfolio transactions; LCM is the clear global leader in this key growth area

▪ Initiated a pilot program providing a funding solution for small claims in the insolvency market in Australia and the United Kingdom

▪ Continued growth of pipeline with 64 investment opportunities (as at 3 September 2019)

▪ 235% increase in applications during FY19; maintaining disciplined focus on due diligence with only 3% of applications converted into an investment

▪ Delisted from Australian Securities Exchange and listed on AIM in December 2018; raising circa A$35 million (£20 million) of primary equity, following a raise of A$10 million on the ASX in the period

Financial highlights

▪ Revenue of A$34.71 million increased by 17% (FY18 A$29.68 million)

▪ Gross profit of A$20.34 million increased by 23% (FY18 A$16.51 million)

▪ Adjusted profit before tax of A$12.28 million broadly flat against FY18, despite unprecedented growth and expansion across all areas of the business

▪ Cash on balance sheet of A$49.12 million (A$52.60 million as at 31 December 2018) and total litigation investments of A$27.39 million (A$20.70 million as at 31 December 2018)

▪ Leading performance metrics with cumulative ROIC since FY12 of 135% (including losses) and portfolio IRR, since FY12, of 80% (including losses)

▪ Final fully franked dividend of 0.828 cents (Australian) per share; following the interim dividend of 0.506 cents (Australian) per share paid in May 2019

Notes:

¹ LCM reports on a cash accounting basis (historical cost), there are no fair value adjustments included in its financials

2 Revenue includes the impact of the adoption of AASB 15 Revenue from Contracts with Customers

3 Adjusted for foreign exchange loss, IPO and other transaction expenses, share based payments expense, non-recurring legal fees on litigation, provision for employee entitlements, non-recurring consultancy fees

4 Litigation investments equates to the total of current contracts costs and non-current contract costs on the Consolidated Statement of Financial Position

5 Cash receipts equates to Proceeds from Litigation Contracts as disclosed in the Consolidated Statement of Cashflows (Cash flows from operating activities). The cash receipts of $26.80m does not include revenue pf $7.627m due from the completion of litigation services, of which $7.18m is held in an Escrow Account awaiting orders of the Court for distribution.

Patrick Moloney, CEO of LCM, said:

“We are pleased to present a strong set of results for FY 2019, which we have delivered alongside unprecedented growth and expansion across all areas of our business. We have continued to invest in the right people who have the appropriate experience to support our growth trajectory.

The results we publish today represent realised revenue and demonstrate our true performance. We remain committed to providing our investors with the disclosure and transparency they need to assess the underlying performance of the business and the basis of our returns.

We are excited about a number of significant growth opportunities for LCM. Notably, corporate portfolio funding, where in the past year we have established ourselves as the global leader for this product. During the year, we originated over 15 applications and funded two corporate transactions. This number might seem small, but it represents more than any other funder globally and corporate portfolio funding remains a key part of our growth strategy going forward.”

WEBCAST AND CONFERENCE CALL

LCM will be hosting a live meeting and conference call today at 09:30 (BST). The webcast can be accessed via our website at www.lcmfinance.com/shareholders/. A conference call is also available for those unable to join the webcast, please register at https://secure.emincote.com/client/lcm/lcm001/vip_connect to get access. There will be a facility to ask questions. A replay of the webcast will be available later today.

CONTACTS

Litigation Capital Management

Patrick Moloney, Chief Executive Officer

Nick Rowles-Davies, Executive Vice Chairman Stephen Conrad, Chief Financial Officer

Canaccord (Nomad and Broker) Bobbie Hilliam

Hawthorn Advisors

Lorna Cobbett / Zinka MacHale

Tel: 020 7523 8000

lcm@hawthornadvisors.com

Tel: 020 3745 4960

PROJECT AND PIPELINE UPDATE

As at 30 June 2019, LCM has a portfolio of 29 current projects under management. 23 projects are unconditionally funded and six projects conditionally funded. The portfolio shows significant growth of 45% in the number of projects under management,given LCM wasmanaging 20projectsasat 30June2018. In linewith LCM’sinvestment philosophy, the portfolio maintained diversity across industry sector, jurisdiction and capital commitment.

Both project and pipeline opportunities are well diversified by litigation type and geography, while maintaining a disciplined process of project selection. LCM has pre-qualified 64 pipeline projects with estimated investment of A$394 million.

During FY19 both the number and quality of applications received by LCM increased significantly. A total of 419 applications were received representing an increase of 235%, compared with 125 applications received in FY18. This application increase was largely due to our expansion into new jurisdictions, but also from LCM realising a higher profile

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SIM IP Provides Funding and Strategic Advisory Services to Gene Pool to Drive Global Intellectual Property Monetization

By Harry Moran |

Sauvegarder Investment Management, Inc ("SIM IP"), a Miami-based firm focused on intellectual property-based financing, investment, and monetization, today announced it has entered into a funding and strategic advisory agreement with Gene Pool Technologies.

Gene Pool Technologies ("Gene Pool") focuses on the development, aggregation, and licensing of advanced extraction and processing technologies, with a particular emphasis on solutions applicable to the cannabis and hemp industries. Gene Pool's intellectual property portfolio broadly covers innovations in plant extraction methods, equipment, and systems that enhance quality, safety, and efficiency for producers and manufacturers.

"We believe that Gene Pool brings a disciplined, technology-focused process to intellectual property licensing that aligns with SIM IP's commitment to efficient and transparent value creation," said Jennifer Burdman, Managing Director at SIM IP. "We look forward to collaborating to provide inventors with stronger protection and improved monetization opportunities, while offering industry participants with streamlined access to critical technologies through clear and equitable licensing terms."

Erich Spangenberg, CEO of SIM IP, commented, "Gene Pool is leveraging two key services provided by SIM IP, which includes capital support through a corporate investment and unparalleled, strategic advisory expertise. Gene Pool strategically chose to leverage our capital for both litigation and the anticipated acquisition of additional intellectual property, as well as our extensive expertise in global intellectual property monetization to support execution and business strategy."

Gene Pool partners with innovators and technology owners to ensure their innovations are protected, compensated, and accessible to operators through operator-friendly, non-exclusive licensing agreements. Gene Pool's licensable portfolio includes  over fifty patent assets, with approximately half owned by Gene Pool and the rest being in-licensed from key market innovators.

"Gene Pool was seeking a strategic partner capable of providing capital and supporting the execution of our intellectual property monetization strategy across multiple jurisdictions, including the U.S. and Europe. We're pleased to have identified SIM IP as a partner and to have formalized our collaboration," said Travis Steffen, CEO of Gene Pool. "We met with numerous litigation funding firms; however, only SIM IP demonstrated strategic advisory service capabilities and meaningful experience in global enforcement strategies."

Over the last few years, Gene Pool secured significant legal victories against companies in the cannabis and hemp industries including defending key patent claims in three inter partes review proceedings before the U.S. Patent and Trademark Office; defeating invalidity, non-infringement, and illegality challenges against these claims in U.S. District Court; and most recently obtaining summary judgment from the same court that the Defendants infringed these claims.

About SIM IP

Sauvegarder Investment Management, Inc. ("SIM IP") is a Miami-based firm focused on intellectual property-based financing, investment and monetization opportunities. SIM IP invests across IP as an asset class and across jurisdictions, primarily focusing on the US, Europe, and Asia. Further information is available at www.simip.io. Follow us on LinkedIn, X (Twitter), and Instagram

About Gene Pool Technologies

At Gene Pool Technologies, we believe in industry solutions that recognize inventors, incentivize ongoing R&D, and enable operating companies with seamless access to technologies that will be critical to the long-term success of the Cannabis industry. Our team brings decades of experience across Cannabis and intellectual property and is deeply committed to the success of the industry and the innovation that will continue to drive quality, safety, and efficiency.

Forward-Looking Statements

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding SIM IP's strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside SIM IP's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.

Investors should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" sections of SIM IP's filings with the SEC, including the Registration Statement and the other documents filed by SIM IP. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.

Legal Bay Presettlement Funding Offers Comprehensive Guideline for Funding Contracts to Avoid

By Harry Moran |

As the lawsuit funding industry continues to grow, Legal-Bay Lawsuit Settlement Funding is issuing a public advisory to plaintiffs navigating the complex and often underregulated pre-settlement loan landscape. The company urges consumers to remain vigilant against deceptive contract practices and highlights its own commitment to transparency, fairness, and ethical funding solutions.

While pre-settlement funding can offer critical financial relief during lengthy legal battles, Legal-Bay warns that not all funding companies operate ethically. In particular, the firm is cautioning plaintiffs to avoid contracts that include compounding pricing models, hidden fees, and vague language, common tactics used by unscrupulous funders.  Legal-Bay also offers refinancing's in event you have a large legal funding lien with a bad compounding rate and want cheaper pricing.

Chris Janish, CEO of Legal Bay, says, "Too often we see plaintiffs fall victim to exploitative funding agreements that leave them owing far more than they borrowed, especially after years of compounding costs buried in the fine print. Many of these contracts are intentionally confusing, designed to mislead consumers. At Legal-Bay, we offer refinancing options on large funding buyouts, by converting your existing compounding lien into a flat pricing lien – no different than a home mortgage refi."

If you are involved in any active litigation and would like to discuss how to get a cash advance from your anticipated lawsuit settlement, please visit the company's website HERE or call 877.571.0405 where agents are standing by to hear about your specific case.  

Legal-Bay outlines several red flags that plaintiffs should watch out for when considering a pre-settlement advance:

  • Compounding interest without clear repayment terms: Some funders fail to disclose how much a plaintiff will owe over time, resulting in balances that balloon dramatically after two or three years.
  • Vague or misleading contract language: Important terms are often hidden in fine print or presented in confusing legal jargon.
  • Discouraging attorney involvement: Ethical funders will encourage plaintiffs to review all funding agreements with their attorneys instead of trying to edge them out of the discussion.
  • Lack of disclosure about maximum repayment: Some contracts leave plaintiffs uncertain about how much will ultimately be deducted from their settlement.

In contrast, Legal-Bay's approach is rooted in transparency, fairness, and full attorney cooperation. All of their contracts are structured to include straightforward terms, capped repayment amounts, and no compounding interest. Plaintiffs and their attorneys are given full access to review and understand the terms before any funding is finalized.

Legal-Bay's dedication to ethical funding has made it a trusted name in loan on lawsuit funding for plaintiffs in personal injury, sexual abuse, motor vehicle accidents, medical malpractice, dog bite, commercial litigation, and many more.

Legal-Bay's lawsuit funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as loans on lawsuit or settlement loans, legal funding isn't like a loan at all. Because the funds are non-recourse, there's no risk since there is no obligation to repay the money if the recipient loses their case.

To apply right now for a loan settlement program, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer any questions.

Theo Ai Secures 4.2MM Seed Round to Advance AI-Powered Settlement Prediction for Big Law

By Harry Moran |

Theo Ai, the AI-driven prediction platform for litigation, has raised a $4.2 million seed round just six months after its $2.2 million pre-seed announcement in November. The round was co-led by returning investor NextView Ventures and new investor Collide Capital. As part of the investment, Aaron Samuels, General Partner at Collide Capital, will join Theo Ai’s board. The funds will be used to expand proprietary data pipelines, enhance legal corpus, and reinforce supervised learning with legal experts.

“The legal industry is at a turning point, and AI-powered predictions are becoming essential for managing client expectations and executive decision-making,” said Patrick Ip, Co-founder and CEO of Theo Ai. “With this investment, we will continue to develop the infrastructure that makes settlement predictions more precise and valuable for law firms and corporate legal teams.”

Theo Ai will use the new capital to accelerate product development, focusing on its AI-powered settlement prediction tools tailored for Big Law firms and General Counsels. The company is committed to building firm-specific prediction engines that leverage case history and proprietary data to provide actionable insights across a wider array of legal scenarios.

“The leadership team within Theo Ai continues to demonstrate a deep understanding of customer needs and the way advanced technology can reshape the legal field for decades to come” said Co-Founder and Partner at NextView, Rob Go. “this round came together very quickly because customers are quickly adopting what they see as a uniquely valuable solution."

“Theo Ai is transforming the way legal teams predict and manage settlements, and we are excited to back their next phase of growth,” said Aaron Samuels. “Having crossed paths with Patrick early in our respective founder journeys, it’s incredible to now collaborate in building the future of AI-driven legal intelligence.”

The funding round also marks a significant expansion of Theo Ai’s leadership team with the appointment of Jay Mandal as Chief Product Officer. A Stanford Law Lecturer and former COO at SAP, Mandal brings deep expertise in AI, enterprise technology, and legal innovation. He previously was the head M&A attorney at Apple and founded a legal tech company acquired by Rocket Lawyer. The company also welcomed Rob Martorana as Head of Partnerships. A former attorney with over 25 years in legal sales and marketing, including 12 years in litigation finance, Rob brings deep expertise across portfolio, single-case, and corporate monetization strategies. He most recently founded REMO Litigation Finance and served as SVP at Burford Capital.

Theo Ai’s seed round saw participation from all pre-seed investors, including nvp capital, Ripple Ventures, and Beat Ventures. The round also welcomed new investors Four Acres Capital and a distinguished group of angel investors from across legal, finance, and technology:

  • David Fox (Kirkland & Ellis)
  • Bo Berluti (RTP Global)
  • Ramesh Dhanaraj (ex-Fortress Investment Group)
  • Vivek Nasta (ex-Thomson Reuters)
  • Akash Garg (ex-Uber)
  • Art Calcagnini (ex-UBS)

Theo Ai initially launched by helping litigation funders optimize their investment decisions – recently partnering with Mustang Litigation Funding – and has rapidly expanded into serving Big Law and in-house legal teams. The strong market demand led to an oversubscribed seed round, reinforcing confidence in Theo Ai’s technology and vision.

With this latest funding, Theo Ai is poised to drive the future of AI-powered legal decision-making, delivering cutting-edge predictive solutions for the legal industry.

To learn more and join the waitlist for Theo Ai, visit: Theo Ai

About Theo Ai

Theo Ai is the first predictive engine designed by technical and legal professionals to forecast the outcome of legal disputes. Its AI models are trained on historical case data and incorporate real-time analytics with predictive modeling to deliver accurate and actionable insights. Theo Ai is meeting the most critical need for legal professionals - offering accurate case outcome predictions, backed by data. To learn more and join the waitlist for Theo Ai, visit: https://theoai.ai/#product