Australian Securities Exchange has approved LawFinance, formerly JustKapital, to get re-instated to the official list of ASX. Along with this approval, the name of financial sector company JustKapital (ASX: JKL) has officially been changed to ‘LawFinance Limited’ (ASX: LAW) on ASX effective 31 December 2018.
LawFinance Limited (ASX: LAW) provides litigation funding, disbursement funding and after the event insurance services in Australia and the United States. LawFinance shares last traded on 17 July 2018 at $0.074 and are now reported to re-commence trading on Wednesday, 2 January 2019.
In connection with the satisfaction of conditions for the reinstatement of its securities, the company has enclosed the capital structure and the statement of commitments in the prospectus dated 12 September 2018.
As of today, i.e., 31 December 2018, LawFinance has 483,635,467 issued capital that includes 147.93 million existing shares of the company, 24.52 million shares in right issue, 215.09 million shares issued to NHF founder in scrip offer, and 93.75 million shares issued under placement. These shares were issued at a share price of A$0.08 per share. However, the company told that these total shares on the issue do not include the exercise of all unlisted options, WHSP Warrants, New Investor Warrants, Founder Warrants and conversion of the convertible bonds.
The company also disclosed the pro-forma historical statement of its financial position under which cash and cash equivalents of the company stood at US$9,306,000 for the period ended 30 June 2018. It reflects the funds raised under the Prospectus and Placement, i.e., A$2 million and A$7.5 million, respectively.
The independent investigator, Stantons International Securities Pty Ltd stated that based on the current cash flow forecasts of the company post 30 June 2018, it is their view that JustKapital will have ‘sufficient working capital’ to meet its objectives.
As per the reinstatement announcement, the working capital amount of the company was reduced by the $2.34 million offset against the Lucerne Group loan. In the concluding statement, the company stated it has raised sufficient funds to cover all the financial requirements at close and still retains adequate working capital to operate the Merged Entity going forward.
Over the past 12 months from its last trade, LAW stock has witnessed a plunge of 61.05% including the decline of 2.63% in one month to 17 July 2018.
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