Issuance Of New Ordinary Shares In Connection With LTIP
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The issuance of new shares by Burford Capital Limited as part of their Long Term Incentive Plan is a significant event that warrants a closer look from a financial perspective. The release of over half a million new shares into the market can have several implications. Firstly, it dilutes existing shareholders' equity, potentially impacting the stock's price negatively in the short term. However, this dilution effect is often a trade-off for the perceived benefits of incentivizing management and key employees, which could lead to better company performance in the long run.
From an investor's standpoint, the increase in total voting rights could signal a change in shareholder dynamics. The new distribution of voting rights might alter the balance of power within the company's shareholder base, which could influence future corporate decisions. Investors should monitor how this shift could affect company policies and strategies, especially those related to governance and shareholder engagement.
When analyzing the impact of Burford Capital's new share issuance, it is essential to consider the broader market implications. The AIM market of the London Stock Exchange is known for its growth-oriented and smaller companies. The admission of these new shares could attract investors who are looking for opportunities in the legal finance and asset management sector, potentially increasing trading volume and liquidity for Burford's shares.
However, it is also critical to assess the company's performance relative to industry peers. If the issuance of shares is perceived as a common practice among similar firms, the market reaction may be muted. Conversely, if this move stands out as atypical, it could lead to increased volatility in the stock's price. Market participants will likely watch closely for any changes in analyst ratings or investor sentiment following the new share admission.
The reference to the FCA's Disclosure Guidance and Transparency Rules in the context of Burford Capital's share issuance is noteworthy. These rules are designed to ensure that investors have timely and accurate information to make informed decisions. The disclosure of the total number of voting rights is a regulatory requirement that provides transparency and helps maintain market integrity.
Shareholders of Burford Capital must be aware of these guidelines to understand their reporting obligations. Any failure to comply with notification requirements can have legal consequences. This aspect of the share issuance, while procedural, is an essential part of maintaining investor confidence and the orderly operation of the market.
Application will be made for these 533,066 new Shares to be admitted to trading on the AIM market of the London Stock Exchange plc. The expected date of admission is April 17, 2024. These 533,066 new Shares will also be listed on the New York Stock Exchange.
Following the issuance of these new Shares, the Company's issued ordinary share capital is 219,849,094, of which 669,947 Shares are held in treasury and do not have any voting rights. Therefore, the total number of voting rights in the Company, excluding treasury shares, will be 219,179,147 after giving effect to this issuance of new Shares. This figure for the total number of voting rights may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in the Company under the FCA's Disclosure Guidance and Transparency Rules.
About Burford Capital
Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in
For more information, please visit www.burfordcapital.com.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.
This announcement does not constitute an offer of any Burford private fund. Burford Capital Investment Management LLC, which acts as the fund manager of all Burford private funds, is registered as an investment adviser with the US Securities and Exchange Commission. The information provided in this announcement is for informational purposes only. Past performance is not indicative of future results. The information contained in this announcement is not, and should not be construed as, an offer to sell or the solicitation of an offer to buy any securities (including, without limitation, interests or shares in any of Burford private funds). Any such offer or solicitation may be made only by means of a final confidential private placement memorandum and other offering documents.
Forward-looking statements
This announcement contains "forward-looking statements" within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, regarding assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended as "forward-looking statements". In some cases, predictive, future-tense or forward-looking words such as "aim", "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "plan", "potential", "predict", "projected", "should" or "will" or the negative of such terms or other comparable terminology are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. In addition, Burford and its representatives may from time to time make other oral or written statements that are forward-looking, including in its periodic reports that Burford files with, or furnishes to, the US Securities and Exchange Commission, other information made available to Burford's security holders and other written materials. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Burford cautions that forward-looking statements are not guarantees of future performance and are based on numerous assumptions, expectations, projections, intentions and beliefs and that Burford's actual results of operations, including its financial position and liquidity, and the development of the industry in which it operates, may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in this announcement. Significant factors that may cause actual results to differ from those Burford expects include, among others, those discussed under "Risk Factors" in Burford's annual report on Form 20-F for the year ended December 31, 2023 filed with the US Securities and Exchange Commission on March 28, 2024 and other reports or documents that Burford files with, or furnishes to, the US Securities and Exchange Commission from time to time. In addition, even if Burford's results of operations, including its financial position and liquidity, and the development of the industry in which it operates are consistent with the forward-looking statements contained in this announcement, those results of operations or developments may not be indicative of results of operations or developments in subsequent periods.
Except as required by law, Burford undertakes no obligation to update or revise the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise.
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SOURCE Burford Capital
