When we were looking at Churchill and its Cash situation, it was clear they needed monies to fund the Company going forward. The concern though is that they we're still short of funds to take the case through to its conclusion...my estimate was around £2M/$3M and Ian's was around $8.
The reason for the differences was, Ian's style is more aggressive (or realistic) on the one hand that those putting up $3M may also want a bit more of the cream because they're funding it; so are likely to demand that Churchill accept $8M in various warrants or options or similar. My view was merely what was required in terms of funding the case and not really considering the needs of the Board etc...as this could be completed in various other ways.
So in considering the above, I hope they're 'going to get on the phone' and see what is available. Don't get me wrong it's not dire and there's a lot of other options, but as a shareholder with a vested interest I'd like to see them do a) an open offer or b) a placing around the current price. Of course no one wants to see dilution, but these cases/companies have a habit of rising and falling throughout the process. So I'd rather it on 'better terms' than not so good.
They could also opt for Third Party Litigation Funding, or perhaps even complete a company bond in the same style, there's many options and some of them as an investor I/Ian and many others would be interested in...similar to Rusoro in essence.
Does anyone specifically invest in Legal Cases? The benefits are significantly greater than other aim companies out there that sell hope and high board salaries in exchange for a lot of your money...
Have a very good Mothering Sunday for those in America!
All the best, Fraser
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