The shares of litigation funder IMF Australia Ltd rocketed 13 cents this morning, up to 74 cents, following the annoucement of its unprecedented $22 million windfall today.
The shares of litigation funder IMF Australia Ltd rocketed higher today following the annoucement of its unprecedented $22 million windfall today.
IMF's latest boon came as a result of funding the grand children of the late iron ore prospector Peter Wright, 23-year old Tim and 27-year-old Natalie Wright, in their legal battle to win a share of the family's iron ore fortune from their uncle Michael Wright and aunt Angela Bennett.
IMF annouced late yesterday that the matter had been settled and its share in the payout from the settlement proceeds was about $22 million.
IMF said the full terms of the settlement are covered by a confidentiality agreement but the total settlement was worth $68 million.
Over the past twelve months, the company's volatile share price have fluctuated from as high as 76 cents to as low as 45 cents, before today's news sent the share prices rocketing upwards again.
In February the company reported a $10 million net profit before tax forecast however updated that forecast a couple of weeks ago when it became aware of confidential and incomplete negotiations in relation to several matters it was funding.
"If one or more of these matters is completed prior to 30 June 2008 there will be a substantial improvement in the forecast," the company said in a statement.
Following its success with the Wright ore dynasty settlement, IMF now proposes to fund claims that certain clients of Opes Prime Stockbroking Ltd have against ANZ Banking Group Ltd.
Depending on IMF's consideration of the individual cases, the company said it will provide litigation funding to Opes clients and will announce the claim value in its quarterly case investment reports.
IMF shares jumped 13 cents to a high of 74 cents before closing at 71.5 cents.