Stans Energy Corp. (“Stans” or the “Company”) is pleased to announce that it has entered into a litigation funding agreement with a subsidiary of the Calunius Litigation Risk Fund 2 LP (the “Funder”). Calunius Capital LLP, is the exclusive investment advisor to the Funder which specializes in funding commercial litigation and arbitration claims. Calunius Capital LLP is authorized and regulated by the Financial Services Authority as an investment adviser.
Under the terms of the litigation funding agreement, the Funder has agreed to assist in the funding of Stans’ legal costs and to provide funding towards ongoing corporate overhead costs, in relation to the international arbitration proceedings against the Republic of Kyrgyzstan (the “Defendant”) on a non-recourse basis.
Stans will continue to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company’s claims, and continues to have the right to settle with the parties, discontinue proceedings, pursue the proceedings to a final determination and take any action Stans considers appropriate to enforce judgement.
Under the terms of the privileged litigation funding agreement, the Company has given certain warranties and covenants to the Funder. In consideration for the provision of arbitration financing, Stans has agreed to pay to the Funder a portion of any final settlement of the arbitration claim against the Defendant (the “Funder’s Fee”). The Funder’s Fee shall only become payable upon a final settlement of the arbitration claim and the value of the Funder’s Fee is dependent upon a number of variables including the value of any settlement and the length of time taken to reach a settlement. The agreement also provides that the amount of the Funder’s Fee shall not exceed the amount of the aggregate proceeds of the arbitration claim under any circumstances.