Emmerson PLC on Thursday said it has signed a deal with a specialist litigation funding firm to secure $11.0 million in financing.
The funding will go towards a dispute with the government of Morocco.
The dispute, Emmerson explained in November, arose from ‘various breaches’ to the bilateral investment treaty signed in 1990 between the UK and Morocco for the promotion and protection of investments, which came into force in 2002.
In addition, the Moroccan focused potash development company confirmed Boies Schiller Flexner LLP as its litigation counsel.
Managing Director Graham Clarke said the capital provision agreement ‘secures the medium-term future of the company.’
‘We can now move forward with BSF as our legal partners to deliver the best possible outcome for the company and its shareholders. BSF tend to only take on winning cases and their confidence in the case reinforces our confidence in the outcome’.
Shares in Emmerson shot up 20% to 0.73 pence each in London on Thursday.
The $11 million can be drawn down in tranches to satisfy litigation funding requirements and for general working capital purposes.
In the case of a successful settlement or award, the return to the funding party shall be based upon the greater of a multiple of the final drawn-down amount or a percentage of the final award.
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