Investee Company Update

RNS Number : 9903V

FastForward Innovations Limited

22 April 2016

 

22 April 2016

FastForward Innovations Limited

("FastForward" or the "Company")

Investee Company Update: Diabetic Boot Company Limited further fund raise

FastForward notes that its investee company, Diabetic Boot Company Limited ("DBC"), is seeking to raise up to £3.5 million from its shareholders by issuing new ordinary shares at a price of £23 per share. New shareholders will also receive warrants in the ratio of one warrant for each two new shares issued, the warrant is exercisable at £26.45 per share within five years ("Warrants"). The Company is not intending to invest in this issue.

The Company also notes that, on 20^th April 2016, Regent Pacific Group Limited (HKX:575) ("Regent") announced that it has entered into a binding Term Sheet with DBC in respect of a conditional subscription for up to 130,434 new DBC shares (and 65,217 Warrants) for an aggregate consideration of up to £2,999,982. These funds are due to be invested by Regent in three conditional tranches; the Company understands the conditions in relation to the first tranche have been met thereby warranting the issue of such new DBC shares.

Lorne Abony, CEO of FastForward commented, "DBC is seeking to raise funds from shareholders at a 72% (114% on an annualised basis) premium to our original investment cost in September 2015. We are very pleased with the progress that the DBC team has made. We believe that this transaction is significant validation of Fast Forward's investment platform, we invest in innovative, early-stage companies that have significant growth potential, and that is certainly the case with this investment".

DBC's recent milestones include:

·      Obtaining US FDA clearance in December 2015;

·      Fully operational US subsidiary and securing the majority of the approvals needed to begin sales and distribution;

·      Commencement of its first US clinical trials studying Gait Analysis, Pressure Mapping, and increased blood flow to the wound bed. Management expects the results of such trials to add to the growing credibility of DBC;

·      The reimbursement that DBC will be seeking in the US has been confirmed at a level which is higher than previously estimated and will allow for commercial sales to be made at a more profitable level; and

·      In the UK, DBC is in full production and all outstanding orders of PulseFlowDF have been shipped.

FastForward currently has an interest of 4.9% in DBC's issued share capital and its resultant holding, should DBC be successful in raising the full £3.5 million it is seeking, would be expected to be 3.72% (pre-dilution). Investors should also note that certain directors of FastForward, being Jim Mellon, and Stephen Dattels, are directors and have a shareholding interest in Regent.

-ends-

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

 

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