LitFunding withdraws registration statement for equity line

New York, April 11 - LitFunding Corp. said it has withdrawn its registration for 22 million shares that would have been issued under an equity line of credit with Dutchess Private Equity Fund, II, LP.

No stock had been issued under the registration, LitFunding said in its filing with the Securities and Exchange Commission.

In February, LitFunding said it received a $10 million equity line of credit from Dutchess which would have allowed it to sell shares at a 4% discount to the market over 36 months.

Based in Las Vegas, LitFunding is a wholly owned subsidiary of LitFunding USA. It provides funding for litigation through plaintiff's attorneys.

"This is an exciting development for shareholders," said LitFunding president and chief executive officer Morton Reed in a news release.

"The request for this withdrawal could result in a significant number of our shares being pulled from the open market. Management believes in maximizing shareholder value, and minimizing dilution. The company has significantly improved its financial position and balance sheet strength over the last 12 months. We currently have a backlog of $3 million worth of cases to process, and have continued to maintain our dominance in our niche litigation funding business."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.