LONDON (Alliance News) - FastForward Innovations Ltd said Wednesday shareholders of its investee company Nuuvera Corp "overwhelmingly" agreed to the CAD826 million or GBP475 million acquisition approach from Aphria Inc.
Investment company FastForward holds a 3.4% stake in Nuuvera, implying its stake is valued around CAD28 million or GBP16 million based on the acquisition price.
67.2% of voting rights were cast by Nuuvera shareholders. Of these, 99.9% voted in favour of the deal. The deal only needed approval of 66.6% of attending shareholders to vote in favour of the deal to progress.
The acquisition is expected to close on or around Friday.
Aphria made a bid to acquire Nuuvera in a cash and share deal in late January. Nuuvera shareholders will receive CAD1.00 in cash and 0.3546 in Aphria shares.
Based on Aphria's share price at the time the deal was announced, this values the bid at CAD8.50 per Nuuvera share which represents a 31% premium to Nuuvera's 10 day share price average of CAD6.51 prior to the deal's announcement. After completion, Nuuvera shareholders will hold a 14.8% stake in the combined company.
Nuuvera only listed on the Toronto Stock Exchange in early January at a listing price of CAD2.50 each. Within days, its share price had risen to CAD6.85 which valued FastForward's then 3.0 million or 3.75% stake at approximately CAD20.6 million or GBP12.1 million.
At the end of September 2017, FastForward said its total net asset value stood at GBP12.1 million of which GBP4.5 million was contributed by its stake in Nuuvera.
Shares in FastForward were 8.8% higher at 20.40 pence on Monday.
