Further Investment in Yooya

RNS Number : 0979P

FastForward Innovations Limited

15 February 2016

 

15 February 2016

FastForward Innovations Limited

("FastForward" or the "Company")

Further US$1 Million Investment in Chinese
Video Distribution Network Yooya Media

Investment takes FastForward interest to 15%

Highlights

Further to the announcement by FastForward on 11 January 2016 the Company is pleased to announce that it has exercised the option granted to it on 11 January 2016 and subscribed for an additional US$1 million of new shares in BVI incorporated private company Entertainment Direct Asia Ltd. ("Yooya"), an online video distribution network with subsidiaries in Hong Kong and China trading under the brand "Yooya Media" (together, the "Yooya Group"), which provides licensing and management services for video rights owners and leading content providers in the People's Republic of China. The Company has now invested a total of US$1.9 million in Yooya and owns 15 per cent. of Yooya issued shares (on a fully diluted basis). This investment completes the Yooga Group's initial $3m Series Seed Fundraising although FastForward is pleased to note that, following discussions with Yooya, this has now been increased to US$4 million to allow for a potential investment by a strategic partner prior to 10 April 2016.

Commenting on the investment, FastForward Chief Executive Officer Mr. Lorne Abony noted:

"China is the world's second largest economy behind the United States. The Chinese entertainment industry experienced tremendous growth and monetization in 2015 and is expected to surpass the US market in the first half of 2016.  Yooya is very well positioned to be at the forefront of this growth. Yooya's target market, the Chinese millennial, is large, lucrative and pre-disposed to consume and pay for online video content.

Yooya is growing at a staggering rate and has started 2016
extremely strong. It is executing its near term strategy to grow the number of great Chinese content creators in its network in 2016, as well as increasing the number of international content partners. We agree with Yooya's management that this is the right strategy to grow its business while erecting barriers to entry and a sustainable competitive advantage. With the additional capital Yooya will continue to focus on building its tech platform, growing its sales organization and infrastructure and advancing its mission to monetize the online video space in China

In our view, Yooya's current achievements make the pre-money value under the option very attractive and therefore we believe now is the right time to exercise our option.  We anticipate that Yooya will become on of the leading multi-platform network in China, thanks to their visionary technology-driven approach to connecting video platforms, rights owners, and advertisers, and their strong management team."

Yooya Chief Executive Officer, Mr. Rick Myers was pleased FastForward have exercised its option:

"We believe that in FastForward Yooya has a perfect partner for its business, and we are delighted they have taken up their option to invest a further US$1 million.  We, the management of Yooya, have demonstrated that we can deliver on and exceed the business including now recording an average of 200 million views per month, the signing of multiple new distribution deals with additional strategic partners, and the successful rollout of new versions of our video adtech solutions, will continue over the next year and beyond."

Details of the Subscription

The Company has subscribed for 14,345 Series Seed Shares of Yooya ("Yooya Shares") at a price of US$69.71 per Yooya Share (the "Yooya Subscription"), for total cash consideration of US$1,000,000 (the "Consideration").  The Company has the right to appoint one director to the Board of Yooya (for a period of not less than 12 months, or for such longer period as the Company holds an interest of greater than 10 per cent. of Yooya issued shares).  Following the Company's investment of US$900,000 on 11 January 20016 Mr Lorne Abony, the Company's Chief Executive Officer, was appointed as the nominee director of the Company.

The Company's investment formed part of Yooya's "Series Seed Fundraising" co-led by FastForward and Dream Incubator Inc. of Tokyo, Japan ("Dream Incubator"). The Series Seed Fundraising was previously capped at US$3 million (which sum has now been raised following the Yooya Subscription), but following discussions with Yooya this cap has now been increased to US$4 million to allow for a potential investment by a strategic partner prior to 10 April 2016.

Following completion of the Yooya Subscription Yooya has a post-money market capitalisation of approximately US$13.0 million (at the US$69.71 per share subscription price).

About the Yooya Group

China already has three times more online video users than the US and half a billion smart phone users.

Yooya is one of China's fastest growing online video distribution networks. The Yooya Group provides distribution as well as licensing and rights management services in China across all major online video platforms. By offering a 1-stop solution to manage, market, and monetize online video across all platforms, Yooya is building the market-leading platform for content owners and advertisers to gain maximum value from online video in China.

The Yooya Group has already signed deals with 16 of the country's leading online video platforms, including Youku, Tudou, Baidu-owned iQiyi, Sina, and Sohu among others. It also boasts more than 3.6 billion lifetime video views, hundreds of channels, partnerships with leading international content owners, and a growing network of influential Chinese content creators. 

The market for online video in China is growing rapidly and Yooya believes there is a real and immediate need for better distribution, rights management, and advertising solutions in order to effectively reach Chinese consumers of online video.  In particular, Yooya seeks to provide advertisers and content owners with better data to improve monetization of their content, and solutions that enable brands to better target influential and growing consumer groups.

Yooya is led by CEO, Rick Myers, previously head of OS Group at Apple Asia and GM of Cisco Asia Internet Appliance Division whist the remaining Yooya management team boasts significant experience in the media and entertainment industries with key executives previously working at Sony, Sina, China Mobile, and other leading companies.

For the nine months ended 31 October 2015, Yooya had revenue of US$153,000 and incurred a trading loss of US$622,789 for the period.  As at 31 October 2015, Yooya had total net liabilities of US$566,758.

For further information regarding Yooya please visit its website at www.edirect.asia. 

For further information please visit www.fstfwd.co or 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 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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