Trading update

Juridica Investments Limited, the leading provider of strategic capital to both businesses and legal markets for corporate claims, issues the following update on the Company's trading to 1 February 2010.

Highlights

• The Company is pleased to announce the first full completion of a patent infringement case in which the Company has invested. The case generated $2.4 million on an investment of $1.4 million
• A second settlement of $500,000 has been received from an internet-related patent dispute, with further positive results expected to be generated
• So far 19 investments have been made in 27 cases – six have generated cash returns for the Company; of which four have completed with the remainder awaiting resolution with additional defendants
• $8 million committed to three new investments since 2 November 2009
• Relationships with law firms and corporations continue to develop strongly, cementing the Company’s market leading position
• Commitment by the Company’s investment adviser, Juridica Capital Management Limited, to focus on opportunities in the UK market over the coming 18 months
• Juridica published its public policy statement, laying out the terms on which it intends to conduct its business

Commenting on the Company’s recent trading Lord Brennan, Chairman, said:

“Juridica Capital Management Limited, the Company’s appointed investment manager, has continued to see positive developments in the market for corporate claims finance. Demand for our offering remains very strong and we continue to enjoy excellent relationships with top tier US and UK law firms and the general counsels of major corporations. We believe this is a strong indicator of our ability to aid the business community’s efforts to reduce risk from the litigation process.”

Recent Results

Juridica is pleased to announce the first full completion of a patent infringement case in which the Company has invested. Case 6308-F settled in December 2009 for $4.0 million of which $2.4 million was paid to Juridica under the terms of its investment agreement. The Company had invested approximately $1.4 million in this investment in January 2009. The matter was resolved by a negotiated settlement that resulted in a sale of the patent to a major technology company prior to the filing of any litigation.

In addition, Juridica received cash proceeds of $500,000 from a second settlement in Case 0708-B, a case with multiple defendants involving an internet-related patent. This is the second settlement in this case since the Company’s investment. More information is provided about Case 0708-B in the Portfolio Update below.

Track Record

Juridica has now made a total of 19 investments in 27 cases since inception of the business on 21 December 2007. Six investments have resulted in cash proceeds to the Company, of which four have completed and are closed and two have resulted in settlements with one or more but not all defendants. The investment in Case 0608-S has been written down to zero, as previously reported, but the Company is investigating other possible avenues for recovery of its investment.

New Investments

The Company is also pleased to report that since its last trading update on 2 November 2009, Juridica has made three additional investments below:

• On 23 December 2009 the Company made a $1.0 million lump-sum investment in Case 5009-S, which involves breach of contract and misappropriation of trade secrets in state court. Under the terms of the Company’s agreement with the plaintiff, the Company is entitled to a return of its initial investment plus a capital gain payment calculated with regard to the time elapsed from the date of investment to the date of final judgment or settlement. Depending on timing, the capital gain payment ranges from $1.5 million to $3.5 million. Factual discovery in the case is almost completed and expert discovery is set to begin.
• On 29 December 2009 the Company made a $2.0 million lump sum investment in Case 6509-A, which involves a significant judgment obtained in an action for breach of contract, fraud and related claims in a US federal court. The case is proceeding to an appeal. The defendant has posted a security bond for the appeal. Under the terms of the Company’s agreement with the plaintiff, Juridica is entitled to a return of its initial investment plus a capital gain payment calculated with regard to the time elapsed from the date of investment to the date of final resolution. Depending on timing, the capital gain payment ranges from $2 million to $5.5 million. On 30 December 2009, post-trial motions in the case were decided favorably for the plaintiff.
• On 28 January 2010, the Company invested $3.5 million in Case 6409-V. This is the Company’s first acquisition of an interest in patent assets directly from a Fortune 50 company. The patents cover video compression technology and the claimholder expects a complaint to be filed in Q1 2010 against five or more defendants.

With these three new investments in the portfolio, Juridica has expanded its relationships to include two additional Am Law 100 firms and another Am Law 200 firm. In each investment, the Company is pleased to be supporting a client that is represented by an experienced trial lawyer who has established a record of success in the courtroom.

View the full press release in PDF format