JustKapital (ASX: JKL) Takes Over NHF to Seal Financial Merger

KEY TAKEAWAYS:

• JustKapital has acquired 70% of National Health Finance (NHF).
• Priority is to lay down the capital structure of the take-over which is inclusive of paying US$33 million in cash to gain a full stake in Presidio Partners.
• NHF assists victims of personal injury in identifying alternatives in litigation financing and in return is handed out medical receivables by hospitals at a discounted price.

JustKapital has signed an agreement that would enable it to acquire 70% of National Health Finance (NHF), a leading financial entity in personal injury litigation segment. Since then, the details of the acquisition have been finalized to the point wherein JustKapital finds itself in a position to release an update for investors.

Labeled as ‘Proposed Transaction’, the main highlight of the take-over is the reduction of the price from US$68 million to US$ 61.8 million. Although JustKapital has only received incoming interest from investors, both domestic and international, it has agreed to the condition of the two NHF founders receiving JKL shares worth more than US$ 9 million each and cash worth US$5 million each. In addition, JustKapital has also agreed to provide the funds for supporting NHF’s existing network as also future expansion plans.

For JustKapital, the priority is to lay down the capital structure of the take-over which is inclusive of paying US$33 million in cash to gain a full stake in Presidio Partners. Throughout the acquisition, JustKapital is committed to seek approval from its Board of Directors and shareholders by convening an EGM. The company is also bound by the acquisition to bear the operating debt of NHF and ensure future activities like refinancing, the extension of facilities, raising of equity capital and issuing convertible notes.

On its part, NHF has been operating since 1999 wherein it assists victims of personal injury in identifying alternatives in litigation financing and in return is handed out medical receivables by hospitals at a discounted price. Having specialized in this particular field, NHF has experienced consistent growth since its inception and has managed to earn revenue through all its market cycles. JustKapital is a service provider that puts forth financial solutions to both corporate firms and individuals and personal injury litigation is just one of its areas of operation.

Courtesy of this acquisition, NHF will have become a part of a larger network of financial litigation and will be better placed to expand its operations through JustKapital’s framework and resources.

About JustKapital Ltd (ASX: JKL)

JustKapital Limited is a leading provider of financing solutions for Litigation. These solutions include case funding, disbursement funding and adverse cost insurance. JustKapital provides a leading litigation funding offering to finance plaintiffs with meritorious legal claims. The disbursement funding solution provides a financing option to SME law firms who require funding for third party costs on behalf of their clients.

Request Information