Investee Company Update: Factom Inc.

RNS Number : 4644S

FastForward Innovations Limited

09 July 2020

 

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

9 July 2020

FastForward Innovations Ltd

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

Investee Company Update: FastForward Innovations response to Factom Inc. filing for Chapter 11 reorganisation

FastForward Innovations Ltd announces that further to its announcement on 22 June 2020 confirming that investee company Factom, Inc. (" Factom") has initiated a bankruptcy proceeding in the United States Bankruptcy Court for the District of Delaware (the "Delaware Court") seeking reorganisation under Chapter 11 of the US Bankruptcy Code, FastForward has filed its appearance in Factom's bankruptcy case, and also motions requesting that the Delaware Court: (i) dismiss Factom's bankruptcy case so that a receiver may be appointed to liquidate Factom's assets in a Texas state court; (ii) alternatively, to convert Factom's bankruptcy case to a liquidation proceeding under Chapter 7 of the US Bankruptcy Code, or (ii) alternatively, to transfer Factom's bankruptcy case from the Delaware Court to the US Bankruptcy Court for the Western District of Texas, Austin Division (the "Texas Court"). With these filings, FastForward also responds to certain statements made in the proposed plan of reorganisation filed by Factom.

Factom's proposed plan of reorganisation includes an application for the discharge of various debts of Factom, including an application for the Court to set aside the obligations of Factom under FastFoward's $6 million SAFE note. The board of FastForward strongly opposes the proposed reorganisation of Factom on the terms proposed in Factom's proposed plan of reorganisation, and rejects claims made by Factom that FastForward is acting as a barrier to Factom raising capital. If Factom's case is not dismissed or converted, then FastForward will oppose the confirmation of any plan that would seek to discharge the SAFE note, whether in the Delaware Court or the Texas Court.

FastForward is represented in Factom's bankruptcy case by Seth Meisel of DuBois, Bryant & Campbell in Austin, Texas, and Daniel Astin of Ciardi, Ciardi & Astin, LLP in Wilmington, Delaware.

The Board of FastForward reserves its position in respect of any future legal action and will make further announcements as the court proceedings in the US progress and/ or new claims or and/ or new filings are submitted by Factom and/ or the Company.

The Company's interest in Factom is divided between Series Seed shares and the SAFE which were valued at £581,000 and £4,880,000 respectively as at 30 September 2019 but were subsequently written down to zero as announced on 14 April 2020 (to be reported at the next Balance Sheet date being 31 March 2020).

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.

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]
Beth Melluish / Susie Geliher	St Brides Partners Ltd, Financial PR	Tel: [phone]

 

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