Investee Company Update: Entertainment Direct Asia

RNS Number : 6992K

FastForward Innovations Limited

23 April 2020

 

FastForward Innovations Ltd / AIM: FFWD / Sector: Closed End Investments

23 April 2020

FastForward Innovations Ltd

("FastForward", "FFWD" or the "Company")

Investee Company Update: Entertainment Direct Asia Ltd

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, Entertainment Direct Asia Ltd ("EDA"), which trades as Yooya Media.

Further to the announcement dated 20 March 2020, FastForward announces that, together with all EDA shareholders, it has agreed to transfer its shares in EDA to Yooma Corp. ("Yooma") pursuant to a share for share exchange agreement (the "Share Exchange").  The Share Exchange gives an implied value of approximately US$2.25 per share (preferred and common stock), valuing EDA at, in aggregate, US$390,000.

Following the Share Exchange, the Company will hold 7.88 per cent. of the enlarged issued share capital of Yooma. The Company's interest in Yooma has an implied value of US$61,500 based on the terms of the Share Exchange compared to a carrying value in the Company's books of EDA of £1,586,000 as per the Interim financial statements dated 30 September 2019 .

Yooma intends to be an Asia-focused social commerce platform company having built a strong management team with a capital markets background. Whilst it is the stated intention of Yooma to raise funds at a significant premium to the implied price of the Share Exchange, any future funding for Yooma is based on the combined business achieving milestones to justify any uplift in valuation. The impact on the longer term carrying value will depend on the final terms of any fundraising by Yooma and the resulting success of the business; such valuation of its interest in Yooma will be reviewed by the Company at the time it prepares its annual accounts for the year ended 31 March 2020.

In addition, it is expected that Lorne Abony, the Company's Chairman, will join the board of Yooma as a Non-Executive Director to assist with the implementation of their business strategy.

Further updates regarding the business and operations of Yooma will be released by the Company as and when material milestones are achieved.

FastForward Chairman, Lorne Abony, said,"FastForward supports the acquisition of EDA by Yooma. While it is disappointing that the Share Exchange is being undertaken at a significant discount to the carrying value of the Company's interest in EDA, we believe that Yooma, upon raising additional funds, will have the opportunity to build a position as a trusted e-commerce platform for consumers across China, and subsequently more widely across Asia."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

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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For further information on the Company please visit www.fstfwd.co   or contact:

Ed McDermott / Lance de Jersey	FastForward Innovations Ltd	Email: [e-mail]
James Biddle / Roland Cornish	Beaumont Cornish Limited, Nomad	Tel: [phone]
Graham Dickson	Optiva Securities Limited, Broker	Tel: [phone]
Isabel de Salis / Beth Melluish	St Brides Partners Ltd, Financial PR	Tel: [phone]

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.

 

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