(Alliance News) - FastForward Innovations Ltd on Friday said its investee Entertainment Direct Asia Ltd has received a share-for-share exchange offer with a newly-formed social commerce firm.
Fastforward has just shy of a 13% interest in Entertainment Direct Asia, and its stake is valued at GBP1.6 million.
The investor said the implied valuation of Entertainment Direct Asia as part of the offer "would see a significant impairment" on Fastforward's investment in Entertainment Direct Asia.
Chair FastForward said: "While it is disappointing that we expect to suffer a significant unrealised loss in the event the acquisition concludes, I believe that Yooya may become a major constituent in a group uniquely positioned to create the trusted platform for consumers across China, and subsequently more widely across Asia."
On Thursday, FastForward said its investee Factom Inc is yet to "secure further funding".
Back in July, FastForward said it indefinitely extended its simple agreement for future equity with the blockchains software services investee.
The initial deal, which was signed in July 2018, saw FastForward invest an initial USD6.0 million into Factom.
FastForward Director Ed McDermott said: "Factom has reached a critical juncture in its fundraising efforts where it has become clear that without action by FastForward to remove the impediment to investment created by the continued presence of the simple agreement for future equity note, funding will not be forthcoming.
"It is disappointing that this will result in a book loss for FastForward, but we believe that this may, to a degree, have already been costed into our share price which continues to trade at a significant discount to net asset value and that this approach is necessary to retain some value in our investment in Factom."
FastForward shares closed 15% higher at 5.80 pence each in London on Friday.
By Eric Cunha; ericcunha@alliancenews.com
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