Message #11 From:
NewsBot Date: October 13, 2005 09:00:00 AM
LFDG News LitFunding Eliminates Final Note Payable of $200,000
LAS VEGAS--(BUSINESS WIRE)--Oct. 13, 2005--LitFunding (OTCBB: LFDG) is pleased to announce it has recently converted $201,466.62 in debt and accrued interest due and payable to Davric Corp. as of Oct. 7, 2005. Davric Corp. agreed to convert 100% of its debt into 491,382 shares of LFDG's common stock. "This transaction once again reflects on the belief in the viability of our business plan," stated Morton Reed, CEO of LitFunding.
Terry Gabby, chief financial officer of LitFunding, stated, "We are very pleased that the creditor converted their note payable into equity of 491,382 shares. The conversion represents 100% of our current notes payable and reduced the overall liabilities by approximately 8%. This conversion of debt from our balance sheet effectively increases our equity by over $200,000. Again management has been able to strengthen cash flow, which would have been used to repay the note and apply these funds to our expanding business."
About LitFunding Corp.
LFDG, through its wholly owned subsidiary LitFunding USA, remains one of the nation's largest public companies specializing in the funding of litigation primarily through plaintiffs' attorneys. LitFunding is in the litigation funding business concentrating on making advances to plaintiffs' attorneys primarily in the areas of personal injury. A fee is earned by LitFunding when any lawsuits it funds are settled or otherwise concluded by a court ruling. At that time, both the funds advanced and the fee contractually agreed to are repaid.
The statements in this press release regarding the conversion of debt by Green Mortgage, the perceived value of LFDG's business model, any implied or perceived benefits from conversion of debt, anticipated revenues, LFDG's size and ranking among other public companies in the litigation funding industry, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued ability of LFDG to provide its funding services, costs of operations, delays, and any other difficulties related to LFDG's business operations, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements LFDG makes in this news release include market conditions and those set forth in reports or documents it files from time to time with the SEC. LFDG undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
