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Article from last week's Evening Standard
https://www.standard.co.uk/business/markets/the-cannabis-debate-weed-investment-boom-sparks-calls-for-city-pot-exchange-a4217576.html
"UK stock markets list five UK medical cannabis firms — Sativa Group, Ananda Developments, Highland Natural Resources, Spinnaker Opportunities and FastForward Innovations — although they tend to flock to the UK's version of the CSE, known as the Nex market."
Does anyone know what the connection is (if any) between Softco and Leap Gaming? Several Leap employees on Linkedin have 'Softco/ Leap-Gaming' as their company name.
I see you have a personal agenda. Good luck with that.
Surely FFWD board will not have had much say in the matter anyway as we only hold a minority stake? Agree it's a completely weird course of action though.
That would indeed be the true NAV in the case of a fire sale if the fund ceased trading. Although of course a possibility, this would literally be the worse case scenario for FFWD. There is absolutely no ground for claiming this is the most likely option at the moment.
Think we all understand the risks associated with investing in FFWD and the relationship between risk and reward.
I think we are all happy with that concept. The complication with the SAFE agreement is that we haven't actually bought any units yet so they can't be re-valued until we do.
In terms of what is the optimal price/level of funding, clearly a higher price per unit is best as it shows confidence in the business and its potential. The actual amount of funding is dependent on the needs of the business. Too low and the business would soon need to raise more funds without having made much progress in the interim, too high and it would be unnecessarily dilutive and remove the need for future funding (and therefore the opportunity to raise funds at an even higher price).
No worries Rich. Was starting to doubt myself!
Yes I appreciate that our current holding of 2.06% will be re-valued at the new price.
The 25% discount only applies to the future price. Whatever that price may be. It is not subject to an uplift based on past prices. Your logic implies that the price has already been determined.
Sorry Rich you lost me there. We get a 25% discount on the price of a future raise, regardless of whether it is at a higher or lower price than the last raise. So that still makes $8 million of equity for $6 million investment. Or am I missing something?
So the key difference here is rather than referring to Series B they are are taking about a minimum fund raise of $3 million.
My guess is that the negotiation will result in an extension from the current 90 days to perhaps 6 months or longer with a higher discount and maybe a valuation cap. This will signal to the market that series B is still ongoing although not imminent i.e. within next 3 months. I think neither party expected or wanted to be in this position so the current terms are no longer fit for purpose. This could still be very beneficial for FFWD as long as series B is concluded in a timely manner and on good terms.
On the contrary. Instead of putting investors off, I think it would put FFWD on the map as the go to fund for UK retail investors who want exposure to cannabis. And there are lots of them, myself included. And diversification can be achieved through geography as well with investments in eg USA and Asia. Just my opinion of course!
Yes you're right about diversification and that is of course one of the points of a fund like FFWD. I just believe that the cannabis industry represents such a unique opportunity to increase the value of our fund in the short to medium term, which would be worth the risk of putting most of our eggs in one basket. And then we can diversify again.
My preference would be for a Factom buyout sooner rather than later and for the proceeds to go into EMMAC or a similar investment in USA or perhaps Asia. FFWD have the right experience and connections in that industry. Blockchain clearly has a lot of potential but it's still a technology in its infancy which will take time to pay dividends.
Relevant to what Rich said this morning about the possibility of Factom being bought out by a large tech company:
https://www.bankingtech.com/2019/07/blockchain-id-management-firm-trusted-key-bought-by-workday/
Bull****?
Matador, where did you get the info from about Factom's proposal to the DHS on 14 July?
Fair enough! I was mainly just curious about how the re-valuations work but I suppose any material developments relating to the investees would have had to be RNSed anyway?
What are the chances of any of the larger investee companies getting a significant upward (or downward) revaluation in the next annual accounts? Other than through a funding round I mean. The notes to the financial statements talk about valuation techniques and relevant developments since acquisition, so I was wondering how this might apply to for instance Leap and Factom based on recent events/financial performance.