Acquisition of 29.4% of Leap Gaming

RNS Number : 7171U

FastForward Innovations Limited

11 April 2016

 

11 April 2016

FastForward Innovations Ltd

("FastForward" or the "Company")

Acquisition of 29.4% of provider of

3D Gaming Technology,Leap Gaming

Agreement to take interest up to 41.15%

Summary

AIM listed FastForwardInnovations Limited trading under the symbol FFWD ("FastForward" or the "Company" or "FFWD") is pleased to announce that it has subscribed for29.4 per cent. (on a fully diluted basis) of Nevis incorporated private company,Frails LLC, the sole owner of a subsidiary providing and developing gaming products and technology with a focus on Virtual Sports and Virtual Casino products,trading under the brand "Leap Gaming" ("Leap Gaming" or "Leap"). Leap partners with top-tier online and land-based gaming companies to provide advanced gaming products for end-users.FastForwardexpects to complete a transaction for the additional acquisition of 11.75 per cent. of the fully diluted sharesof Leap within thirty days of the initial subscriptionbringing its total stake in Leap to 41.15 per cent (on a fully diluted basis), for a total consideration of US$3.5 million. This will be funded from the Company's existing cash resources.

This brings the total investee companies in which FFWD has invested to eight as itcontinues to develop its exciting portfolio of venture businesses across a range of subsectorswithin the tech and bio-tech sectors.  This is the Company's first investment in the gaming subsector, an industry in which FFWD has been actively seeking the right opportunity to expand its portfolio.

Commenting on the Leap Gaming Subscription, FastForward'sCEO Mr. Lorne Abony noted:

"Gaming, and particularly 3D and virtual gaming, is an incredibly exciting sector that is growing dramatically.  The world's biggest online and retail gaming operators alike are increasingly seeking state of the art immersive, real life experience, which is exactly what Leap's technology offers.  We anticipate that Leap will become a leading provider of virtual sports and virtual casino gaming technology, thanks to their proprietary graphic generation platform, their already impressive existing portfolio of gaming products, their innovative technology-driven approach toseamlessly integrating their new and existing products into the online as well as retail operators, and of course their extraordinarily strong management team.

The LeapGaming investment is another example of an investment aligned with our core philosophy. We invest in visionary entrepreneurs like the team at Leap who are developing innovative technologies to solve problems in their industries.  We aim to bring early stage private investment opportunities, previously reserved for venture capital firms, to our shareholders and offer liquidity to all our shareholders through our listed platform. FastForward is uniquely poised to eliminate the barriers to investing in private technology and life sciences startups that previously existed for retail investors."

About Leap Gaming

Virtual Sports is an over $1billion industry, growing at double digit rates per year and involves substantial barriers to enter while online casinois a $7 billion industry growing at over 5% per year.  Leap Gaming is uniquely positioned to capitalize on both of these opportunities.

Leap Gamingis adeveloper and provider of 3D gaming technology and products with a focus on Virtual Sports and virtual casino. Leap partners with top-tier online and land-based gaming companies to provide advanced gaming products for end-users.

Leapand its partners have already signed deals with a substantial and growing number ofleading gaming operatorsas well as with established other providers who offer products and services complementary to Leap's.

The market for virtual sports is growing rapidly and Leap Gaming believes there is a real and immediate need for better technology and product features in the gaming sector in order to effectively reach consumers seeking a more realistic and immersive gaming experience.  Leapis well-positioned to fill this need based upon the following differentiating factors:

·             ADVANCED TECHNOLOGY: Proprietary interdisciplinarytechnology that has beenproven resilient and robustunder extremely pressuringconditions.

·             CROSSPLATFORM: Cross platform interfaceswhich have proven to takethe gaming experience tothe next level in terms ofengagement and continuity.

·             CUSTOMISATION& INTEGRATION: Scalable developmentframeworks which ensurefast customisations cycles,including easy to execute brandingand localization options.

The Leap Gaming management team boasts significant executive experience in Gaming, Technology & Finance.

For the 12 months ended 31 December 2015, Leap Gaming had revenue of US$247,000 and incurred a trading loss of US$646,000 for the period.  At 31 December 2015 Leap Gaming had total assets of US$2,303,000.

Investment Summary

The Company has subscribed for 693 Preferred Units of Leap ("Preferred Units")equal to 29.4 per cent interest (fully diluted units)for total cash consideration of US$2,500,000 (the "Initial Subscription").  The Preferred Units are "participating preferred" Units entitled upon a liquidation a 1X liquidation preference, a 6% annual dividend and, thereafter, to participate with the Ordinary Units on an as-converted basis in any remaining proceeds available for distribution to unit holders.

In addition, the Company has agreed toacquire a further 277 Ordinary Units for US$1 million (the "Secondary Closing")from anexisting Unit Holder.Subject to completion of the Secondary Closing, the US$1 million will be satisfied by the issue of new shares in the Company equal to US$250,000 (each to be issued at an implied price of 15 pence per share) with the balance (US$750,000) paid in cash.  It is expected the Secondary Closing will be within 1 month of the Initial Subscription. The Company will make a further announcement as soon as the Secondary Closing is completed.

Upon completion of the  Secondary Closing, the total consideration will be US$3,500,000 and FastForwardwillhave an  interest of 41.15 per cent. (fully diluted units) in Leap Gaming.Upon Completion of the Secondary Closing, the Company will have the right to appoint two managers to the Board of Leap Gaming, for such period as the Company is interested in greater than 30 per cent. of Leap Gaming's issued Units.  The Company will have the right to appoint one manager and one Board observer for so long as the Company is interested in greater than 20 per cent of Leap Gaming's issue Units.

For further information regarding Leap,please visit its website at www.leap-gaming.com.

For further information please visit www.fstfwd.coor contact:

FastForward  Innovations Limited Tel: [phone] Elysium Fund Management Limited

Beaumont Cornish Limited (Nomad) Tel: [phone] James Biddle / Michael Cornish

Peterhouse Corporate Finance Limited (Broker) Tel: [phone] Guy Miller / Lucy Williams

CAUTIONARY STATEMENT

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 Fast Forward 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. Fast Forward Innovationsassumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

 

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