Forbes Ventures is pleased to announce that, further to the announcement of 2 March 2020, it has established a wholly owned UK subsidiary, Forbes Ventures Cell 1 Limited (the ‘UK Cell’).
The UK Cell has been established to acquire UK-issued litigation funding loans, through the assignment of the related receivables – i.e. the litigation funding loans themselves and the interest thereon (‘the Securitised Assets’) – to Forbes Ventures CC 1 (the ‘Maltese Cell’). The Maltese Cell is a Securitisation Cell Company in Malta, which is held in a bankruptcy remote structure and as such is not owned by the Company.
To finance this securitisation, the Maltese Cell will shortly be issuing a prospectus relating to the proposed offer (the ‘Offer’) of 2-year bonds (the ‘Bonds’) and their admission to trading on the Malta Stock Exchange. The Offer has an aggregate value of EUR 35 million. A further announcement will be made at the time of closing of the Offer, which is expected later in September 2020. The net proceeds of the Offer will be paid to the UK Cell as consideration for the assignment of the Securitised Assets to the Maltese Cell, and will provide the funds for the UK Cell to acquire litigation funds in the UK.
Forbes Ventures’ wholly owned subsidiary, Forbes Ventures Investment Management Limited (‘FVIM’), acts as originator and collateral agent for the UK Cell and is responsible for the selection and oversight of the Securitised Assets. FVIM will receive a cash fee for this transaction, upon closing, equivalent to 2% of the funds raised in the Offer.
It is the Company’s intention that the infrastructure which it has established for this securitisation will also be used to facilitate the securitisation of both further litigation funding and other assets across a range of industries. The Company confirms it is in discussion with multiple prospective counterparties from whom it may purchase assets for this purpose. Further announcements will be made upon the Company entering into any such arrangements.
The Directors of Forbes accept responsibility for the contents of this announcement.
