16 Dec 2020 07:00
FastForward Innovations Ltd / AIM: FFWD / Sector: Closed End Investments
16 December 2020
FastForward Innovations Ltd ("FastForward" or, "FFWD")
Further Investment in EMMAC Life Sciences Group
FastForward Innovations Ltd, the AIM quoted company focusing on making investments in fast growing and industry leading businesses, is pleased to announce that it has been issued £750,000 of 12 month Convertible Loan Notes ("CLN") in EMMAC Life Sciences Group ('EMMAC') as part of a funding round by EMMAC to raise £15 million via the issue of unsecured CLN's. The CLN Issue saw strong support from existing shareholders, with Measure 8 Venture Partners LP, EMMAC's largest existing cash investor, leading the round with a significant investment.
The funds raised through the issue of the CLNs, which has seen strong support from existing investors, will enable EMMAC to continue to build upon its position as one of Europe's largest independent cannabis company. Growth in EMMAC's key European markets including the UK continues to gain momentum as demand for medical cannabis and related wellness products grows.
Ian Burns, Chairman of FastForward, commented: "As a European leader in the production and supply of medical cannabis, we are delighted to continue to support EMMAC on its journey as it seeks to meet the rapidly growing demands of this exciting market. EMMAC consistently exceeds our expectations, addressing challenges faced by patients and clinicians and giving more people access to premium quality cannabis-based medicines. As an example, just recently, it announced the UK manufacture of its range of premium medical cannabis products, meaning it can now offer a reliable and high-quality product to the UK at a reasonable price point. We look forward to providing further updates as EMMAC continues its growth trajectory."
Principal Terms of the Convertible Loan Note
FastForward has received arrangement fees (in the form of a discount) on its non-brokered participation in the CLN offering resulting in a cash cost to FFWD of £705,000. The CLN is convertible to ordinary shares in EMMAC at any time prior to 31 October 2021 (the 'Maturity Date') at a price per ordinary share to be determined as follows:
a) the lower of a 20% discount to the issue price per share under an eligible fundraise (being the issue of new shares in EMMAC to raise not less than £10 million (before expenses)) ('Eligible Fundraise') or liquidity event (including change of control and/or initial public offer of shares by EMMAC ('Liquidity Event'); or £0.24; or
b) £0.20 in the event there is no Eligible Fundraise or Liquidity Event prior to the Maturity Date.
The CLN will attract a 9% coupon per annum during the term with interest for the period paid in full on conversion. The interest will be rolled up and converted to equity on the earlier of an Eligible Fundraise or Liquidity Event as set out above, or the Maturity Date.
FastForward's Holding in EMMAC
FastForward currently has a 2.3% interest in the issued share capital of EMMAC with the last reported valuation of this holding as at 31 March 2020 of £2.4 million (based on an implied EMMAC price of 36 pence per share). The subscription by FFWD in the CLN increases the investment by FFWD into EMMAC. Notwithstanding this increased investment, given there can be no visibility on the future terms of the conversion price of the CLN the directors of FFWD anticipate that the original EMMAC investment will continue to be carried at £2.4 million.
About EMMAC Life Sciences Group
EMMAC Life Sciences Group is Europe's largest independent cannabis company, bringing together pioneering science and research with cutting-edge cultivation, extraction, and production. With a unique supply and distribution network throughout Europe, EMMAC's vision is to bring the life-enhancing potential of cannabis to the people who need it. EMMAC is a private company and as such detailed financials are not published. Audited results for the ended 31 December 2019 showed a trading loss before tax of £10.7 million and net assets as at that date of £16.6 million.
Ed McDermott, Chief Executive Officer and board director of FFWD, was a co-founder of EMMAC and remains a 3.9% shareholder in EMMAC. Lorne Abony, advisor to and former director of FFWD, co-founder and current Chairman of EMMAC, is a 11% shareholder in EMMAC.
For more information about EMMAC, please visit https://www.emmac.com/
ENDS
For further information on the Company please visit www.fstfwd.co or contact:
Ed McDermott / Lance de Jersey | FastForward Innovations Ltd | Email: info@fstfwd.co
|
James Biddle / Roland Cornish | Beaumont Cornish Limited, Nomad
| Tel: +44 (0) 207 628 3396
|
Isabella Pierre / Damon Heath | Shard Capital Partners LLP
| Tel: (0)207 186 9927 |
Isabel De Salis / Beth Melluish | St Brides Partners Ltd, Financial PR | Tel: +44 (0)207 236 1177 |
Notes
FastForward Innovations is an AIM quoted investment company focused primarily on disruptive high growth life sciences and technology businesses particularly within the medical cannabis arena. The Company's strategy is to identify early stage opportunities that have an upcoming investment catalyst and grow its portfolio in terms of value whilst limiting the number of investee companies to a level where relevant time can be devoted to each.