Leading global litigation funder, IMF Bentham Limited (ASX: IMF) has announced the dismissal of an arbitration funded in the United States through Fund 1. Fund 1’s investment portfolio includes 36 remaining investments, which as at 31 December 2018, had an EPVi of around $2.95 billion.
As per the company’s announcement, there is no cash impact resulting from the dismissal of the arbitration. IMF is going to write down its Fund 1 and consolidated intangible asset balance by $9.39 Million, creating a corresponding loss on the investment, in Fund 1 and on a fully consolidated basis, in the current financial year.
In February 2018, IMF sold USF Case 31 as part of the disposal of IMF’s pre-existing US investment portfolio and recovered $8.47 million from the sale. The dismissal of the arbitration proceedings is reinforcing IMF’s previously stated view that the US Portfolio Sale was in the best interests of IMF.
For the half-year ended 31 December 2018, the group reported total income of $8.143 million as compared $12.750 million in the previous corresponding period (pcp). The majority of the net gain/(loss) on disposal of intangible assets was generated from 6 of the 10 cases which concluded during the half-year. Gross proceeds from litigation contracts was $15.310 million in the half year period, a 69% decrease on pcp. The consolidated net loss from continuing operations after tax for the half-year was $10.395 million as compared to the loss of $4.385 million in pcp.
As at 31 December 2018, the group had $233.325 million in Cash. During the half year period, the Company raised share capital of $76.105 million as a result of issuing 26,600,000 shares to sophisticated and institutional investors at $2.80 per share on 31 October 2018 and 580,110 shares under its Share Purchase Plan at $2.80 per share on 16 November 2018. During the half year period, IMF funded 14 new investments, comprising 10 investments outside the USA and 4 in the USA. In late 2018, IMF successfully closed its fourth Fund, which is US-centric with capital commitments of US$500 million, with a potential to increase to US$1.0 billion.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $2.450, down by 8.647% during the day’s trade with a market capitalisation of ~$544.26 million as on 25 March 2019 (AEST 3:39 PM). The counter opened the day at $2.620 and touched a day’s low of $2.375 with a daily volume of ~ 545,471. The stock has provided a year till date return of -13.92% & also posted returns of -15.02%, -9.52% & -14.74% over the past six months, three & one-months period respectively. It had a 52-week high price of $3.380 and touched 52 weeks low of $2.230, with an average volume of ~336,322.
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