(Correcting that Cryptologic signed a non-binding letter of intent, previously reported as a binding letter of intent.)
(Alliance News) - FastForward Innovations Ltd on Tuesday said it is intending to realise its investment in Cryptologic Corp after the investee signed a non-binding letter of intent to acquire Wayland Group's Canadian cannabis business.
Fasforward noted that supplying cannabis for recreational use - as Cryptologic's announcement suggests - is not in line with its investment strategy or with UK regulations and would require FastForward to end its involvement with Cryptologic.
As a result, FastForward will "monitor the progress of the proposed transaction and seek opportunities to realise its investment in the Cryptologic debentures".
The acquisition values Wayland's Canadian business at around CAD230 million, or about USD174 million, plus assumed liabilities and will be satisfied through the issue of about 57.5 million Cryptologic shares at a deemed issue price of CAD4.00 per share.
Prior to completing the acquisition, Cryptologic plans to sell its cryptocurrency mining and other operations to become "a single-purpose cannabis company".