By Ian Walker
Shares of RBG Holdings rose 16% on Wednesday after the company said that it has sold LionFish Litigation Finance for up to 3.07 million pounds ($4 million) as part of a plan to reduce exposure to third-party litigation funding commitments.
Shares at 0742 GMT were up 4.25 pence at 31.25 pence.
The U.K. professional-services group said it will use the money raised from the sale to reduce debt and for working capital purposes.
The company has received an initial payment of GBP1.07 million from the sale with the rest dependent upon certain performance conditions being met.
“We have delivered cash back to the group, reduced our net debt, with the potential to receive additional cash depending on LionFish’s future performance,” Chief Executive Jon Divers said.
The board now plans to focus the business on driving organic growth from existing businesses, he added.
Write to Ian Walker at ian.walker@wsj.com