FastForward Innovations Ltd, the AIM-quoted company focusing on making investments in fast-growing and industry-leading businesses, hereby provides an update in respect of investee company, Factom Inc.’s (” Factom”).
Further to the announcement of 19 March 2020, the Company has been notified by the directors of Factom that in a board meeting on 31 March 2020 they concluded that, in the absence of further funding, they now needed to begin the process of assignment of assets for the benefit of creditors.
This action will be treated as a Dissolution Event under the terms of the Company’s $6m Simple Agreement for Future Equity (“SAFE”) and, as such, FastForward will become the largest creditor representing well over 90 per cent. of the creditors. As such FastForward shall control the receivership process and is currently seeking to appoint a receiver to take control of Factom’s assets including all intellectual property (“IP”) upon which the Factom Protocol operates (the “Receivership”).
The Company’s interest in Factom was divided between Series Seed shares and the SAFE valued at £581,000 and £4,880,000 respectively as at 30 September 2019. In light of the Receivership it is likely that the Series Seed shares shall have no carrying value. Likewise the value of the SAFE will also need to be reviewed dependent on the outcome of the Receivership, the resulting value of the assets acquired and the ability to realise value out of them.
As soon as a Receiver is appointed and the process and timetable is understood the Company will make further updates. In the meantime the Directors of FastForward are proactively working with previous Factom management in evaluating options to maximise any value for the assets and the IP.
FastForward Director, Ed McDermott, said, “We are extremely disappointed with this news from Factom. In light of this Dissolution Event under the SAFE we are taking swift action to protect our position as best we can in the circumstances albeit the ability to generate any meaningful return is uncertain. As we go through the Receivership process and understand more of the events that led to this position our position as investors in Factom is expressly reserved. ”
About FastForward Innovations Limited
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.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
The AIM Market of London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding potential values, the future plans and objectives of FastForward Innovations Ltd. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.
Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. FastForward Innovations assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
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