Forbes Ventures Plc - Update on Litigation Funding Securitisation

10 December 2021

FORBES VENTURES
(“Forbes” or the “Company”)

Update on Litigation Funding Securitisation and Suspension of Shares

Forbes Ventures provides a further update on its first Litigation Funding Securitisation and an update on the suspension of its shares.

Litigation Funding Securitisation Update

The Company has been frustrated by the continued and extended delays in completing the listing and closing of the GBP 40 million two-year notes (the “First Issue”), for which Forbes Ventures’ wholly owned subsidiary Forbes Ventures Investment Management Limited (“FVIM”) acts as collateral agent

However, the Company is pleased to announce that it is advised by its Maltese Corporate Advisors that they expect to receive binding commitments for the entirety of the First Issue by no later than 17 December 2021, and that the listing and closing of the First Issue can take place before the end of the year.

Upon closing FVIM will receive a fee of GBP800,000, representing 2% of the total First Issue, for acting as collateral agent.

Although it has taken considerably longer than the Company had expected the listing and closing of the First Issue will represent a significant milestone for the Company and provides the capital to enable it to commence delivery of its future strategy.

The Company is also advised by its Maltese Corporate Advisors that it has received significant interest from the same investors for the previously announced second Litigation Funding Securitisation of GBP 60 million two-year notes (the “Second Issue”), and that there is continuing appetite for further issues beyond the First and Second Issue.

Upon closing of the Second Issue FVIM will receive a fee of GBP1,200,000, representing 2% of the total Second Issue, for acting as collateral agent.  Given the identical nature of the Second Issue to the First Issue there is not expected to be any further delay in commencing a closing and listing of the Second Issue once the First Issue is complete

Suspension of Shares

Whilst the Company had expected to be able to quickly conclude the audit of its accounts and enable restoration of trading, the continued delay in the closing of the First Issue has caused the Company’s auditors to raise questions about the going concern status of the Company if the First Issue was not successfully completed.

The closing of the First Issue will enable the going concern of the Company to be demonstrated and will allow the Company’s audit to be completed.

The Company will make a further announcement upon the First Issue being closed, after which it will, amongst other things, complete and file the audit enabling the Company to seek the restoration of trading in its shares.

As closing of the First Issue and the subsequent completion of the audit would delay such restoration beyond the 6-month anniversary of suspension, the Company has been granted a waiver from Rule 5.2 of the AQSE Growth Market Access Rulebook, extending the deadline under that Rule until  the close of business on 17 January 2022, provided that the First Issue has closed by 31 December 2021.

Proposed Debt for Equity Swap

The significant costs of securing a successful Litigation Funding Securitisation have, to date, been satisfied through loans provided to the Company by CC Capital Limited (formerly named MEGH UK Limited) ("CC Capital"),  the Company’s principal shareholder. When trading in the Company’s ordinary shares is restored, CC Capital intends to convert some or all of its outstanding loans into equity in the Company, as a sign of its commitment to Forbes and its confidence in the Company’s future prospects.

CC Capital is jointly owned by Craig Cornick and Rob Cooper, the Chief Executive of Forbes.

Future Strategy

The Company is grateful to its shareholders for the continued patience they have shown whilst it has sought to reach the closing of the First Issue.  Work has been continuing, in parallel to the Litigation Funding Securitisations, to develop the Company’s long-term strategy.  That strategy aims to generate returns for shareholders from three core components:

1.           Securitisation-as-a-Service (“SaaS”)

2.           Fund Management

3.           Strategic investments and acquisitions

The Company will make a further announcement on or around 17 December 2021 and looks forward to sharing further details regarding its long-term strategy upon the closing of the First Issue.

The Directors of Forbes accept responsibility for the contents of this announcement.

-ENDS-

For further information, please contact:

Forbes Ventures Peter Moss, Chairman Rob Cooper, Chief Executive Officer	01625 568 767 020 3687 0498
AQSE Corporate Adviser Peterhouse Capital Limited Mark Anwyl	020 7469 0930

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).

Copyright r 10 PR Newswire