Litigation Capital Management Ltd (AIM:LIT) shares surged 19% to 4.8p after the dispute-financing specialist announced an extension of a debt covenant waiver from its lender, Northleaf, giving the company more time to resolve its capital position.
The waiver, which had been due to expire on 15 April, has been extended to 30 May, during which period the interest rate on the loan remains elevated by 2% per annum, consistent with the terms of the original waiver.
No additional one-time fee has been charged for the extension.
LCM said the extension reflects Northleaf's continued support as the company works towards a long-term resolution following the launch of a strategic review first announced in September 2025.
Management said it will provide a further update on the progress of the review in due course.
LCM helps fund expensive commercial legal cases. In the past year, the stock has lost 90% of its value after a series of adverse court decisions.