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- Lawfinance (LAW) has entered a trading halt as it plans for an upcoming capital raise
- So far, it is unknown how much the company is aiming to raise or where the funds will be spent
- Under the halt, company shares will be paused until Monday, April 19, or when more information is released to the market
- On the market, Lawfinance last traded at 2.1 cents per share on April 14
Lawfinance (LAW) has entered a trading halt ahead of an upcoming capital raise.
It is currently unknown how much the company is aiming to raise or where the funds will be spent.
The halt means company shares will be paused until Monday, April 19, or when more information is released to the market.
Lawfinance is an Australian based provider of financing solutions for law firms.
Last month, the company sold its litigation funding business JustKapital Litigation to Legal Equity Partners for $1 million.
JustKapital Finance provides finance to law firms to fund the legal disbursements required to progress the claims of their clients, in this case, generally, the clients cannot fund themselves.
During the 2018 financial year, Lawfinance decided to sell the business as it wanted to invest in its core businesses.
However, the exit will need shareholder approval, this has now been postponed.
The set back was announced after the group was informed that one of the litigation cases, where JustKapital Litigation is a co-funder, has had a material
positive development.
A U.S. federal jury decided that the plaintiff should be paid a sum higher than initially anticipated. The defendant has made statements to the media that it is disappointed with the ruling and that it would appeal.
“The Directors and Grant Thornton are assessing whether the development affects their recommendation that the sale transaction is fair and reasonable,” the company explained.
On the market, Lawfinance last traded at 2.1 cents per share on April 14.
