Investee Company Update: Nuuvera Corp

RNS Number : 7792N

FastForward Innovations Limited

11 August 2017

 

11 August 2017

FastForward Innovations Limited

("FastForward")

Investee Company Update

Nuuvera enters into a strategic partnership

FastForward is pleased to provide an update on its investee company, Nuuvera Corp ("Nuuvera" or "the Company"), a privately held company in which FastFoward has a 4.45% equity interest and which was formed to capitalize on the global secular trend towards the legalization of cannabis. Nuuvera has announced that it entered into a global strategic partnership with Aphria Inc. ("Aphria") (TSX: APH or USOTCQB: APHQF), a Canadian company involved in the production, supply and marketing of medical cannabis.

Extracts of the announcement by Aphria read as follows:

'Initially focused on the Canadian market, the partnership includes joint relationships with Nuuvera to expand production across the globe, including Europe, Israel and Latin America.

As part of the partnership, the parties entered into five separate and distinct commercial transactions:

1.   Aphria invested $2 million in a Nuuvera common share offering;

2.   Aphria entered into a supply agreement with Nuuvera to supply annual requirements of 1,500 kgs, growing to 17,000 kgs when Aphria completes its four-part expansion plan in 2018 ("Supply Agreement");

3.   Aphria will sell 100 of the 200 acres of land the Company owns on Mersea Road 8 ("Mersea Property") in Leamington to Nuuvera, in exchange for a cash payment of $4 million ("Land Acquisition");

4.   Aphria will provide consulting services to Nuuvera on the design and build of a 1 million square foot state-of-the-art greenhouse on the Mersea Property, in exchange for a fee equal to 8% of Nuuvera's cost to build the facility, exclusive of its land acquisition costs; and,

5.   Aphria entered into an operational services agreement with Nuuvera to operate the Mersea Property in exchange for a fee of $0.10 per gram of cannabis harvested in the facility ("Operational Services"). Based on Aphria's current expected yield from its 1 million square feet of greenhouse, it is anticipated that the operational services agreement will yield an annual payment of more than $10 million per year to Aphria, once Nuuvera's greenhouse is fully built out. Based on Aphria's current production costs, it is anticipated that Nuuvera will, like Aphria, be one of Canada's lowest cost producers.

"This is an exciting strategic partnership for Aphria and Nuuvera.  By combining our unparalled experience in cannabis production with Nuuvera's extensive international network, we will bring the best of two leaders to meet the growing global demand for cannabis," said Vic Neufeld, Chief Executive Officer, Aphria. "This partnership is further recognition by the global cannabis industry of the strength of our greenhouse growing intellectual property, and of Aphria's strategy to monetize it, in order to create additional shareholder value".  We look forward to building a long-term partnership with Nuuvera to create an even more valuable presence in the market."

Nuuvera has also announced its intention to build a 1 million square foot state-of-the-art, Dutch-style greenhouse, along with over 350,000 square feet of infrastructure, in multiple phases

About Aphria

Aphria Inc., one of Canada's lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. Aphria is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. Aphria was the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.

About Nuuvera Corp.

Nuuvera is a global cannabis business focused on the secular trend towards the legalization of cannabis and is committed to rapidly capturing meaningful market share in regulated jurisdictions.  Through its subsidiaries, ARA - Avanti Rx Analytics Inc. and Avalon Pharmaceutical Inc., Nuuvera holds a Dealer License (GMP) under the Narcotic Control Regulations, and Office of Controlled Substances, and is currently in the final stages of the Health Canada review process to become a Licensed Producer of medical marijuana under the ACMPR, having recently received its "letter to build" approval.  Nuuvera is also pursuing various cannabis-related opportunities in Europe, Israel and Latin America.'

Lorne Abony, Chief Executive Officer of FastForward, said, "Through this partnership, Nuuvera will be one of the largest Canadian producers with one of the lowest cost production facilities in Canada and internationally. Nuuvera is  thrilled to partner with Aphria, a true pioneer in harnessing the power of the sun to grow pharma-grade medical cannabis."

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

FastForward  Innovations Limited [e-mail]   Josh Epstein/ Ian Burns

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

Optiva Securities Limited (Broker) Tel: [phone] Ed McDermott

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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