Investment in Yooya Media

RNS Number : 4613L

FastForward Innovations Limited

11 January 2016

 

11 January 2016

FastForward Innovations Limited

("FastForward" or the "Company")

Acquisition of 7.49% of Chinese
Video Distribution Network Yooya Media

Option to take interest up to 15%

Proposed Placing of New Shares at 15p per share

Investment by the Company in Yooya Media

AIM listed FastForward Innovations Limited trading under the symbol FFWD ("FastForward" or the "Company" or "FFWD") is pleased to announce that it has subscribed for 7.49 per cent. of the issued shares (on a fully diluted basis) of 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 subscribed for 12,910 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$900,000 (the "Consideration").  In addition, the Company has been granted an option to acquire a further 14,345 new shares of Yooya, on the same terms (for total consideration of US$1,000,000) within 90 days of completion of the Yooya Subscription (the "FFWD Option"). If exercised FFWD would own 15.00% of Yooya. As part of the investment in Yooya, FFWD will have 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 is interested in greater than 10 per cent. of Yooya issued shares).

The Company's subscription and the FFWD Option formed part of Yooya's "Series Seed Fundraising" co-led by FastForward and Dream Incubator Inc. of Tokyo, Japan ("Dream Incubator") to raise up to US$3 million (including the FFWD Option). On completion of the Seed Series Funding (but prior to exercise of the FFWD Option) Yooya will have a post-money market capitalisation of approximately US$12.0 million (at the US$69.71 per share subscription price).

Commenting on the investment Stephen Dattels noted:

"I have known Lorne Abony for almost 20 years and through his connections we now have a toehold in the Austin, Texas and Silicon Valley technology hubs. Yooya is an investment opportunity brought to us by Lorne and the Board believes it has significant upside potential for FastForward.

Lorne's network in the US complements Jim Mellon's strength in life sciences, and through both of them we expect FastForward to have access to excellent deal-flow and early stage investment opportunities. The Board of FastForward believe the Company will develop to be a primary liquid platform for retail investors to access early stage investment opportunities in private and pre-IPO technology and life science companies (otherwise the preserve of private venture capital funds and a limited number of high net-worth individuals).

Also, the Company is developing a strategy of raising capital as it evolves to increase the number of investments in its portfolio and consistent with that philosophy will be seeking a further funding of US$6-8 million at 15p as described below."

Commenting on the Yooya Subscription, FastForward director Mr. Lorne Abony noted:

"China is already the largest market for online video in the world, and is still growing dramatically.  The world's biggest media companies and brands alike are increasingly seeking greater online video exposure in China, where already hundreds of millions users are voraciously consuming online video each and every day. We anticipate that Yooya will become 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.

The Yooya investment is another example of an investment aligned with our core philosophy. We invest in visionary entrepreneurs like the team at Yooya who are developing innovative technologies to solve problems in their industries.  We aim to bring early stage private investment opportunities, previously reserved for venture capital firms, to our shareholders and offer liquidity to all our shareholders through our listed platform. FastForward is uniquely poised to eliminate the barriers to investing in private technology and life sciences startups that previously existed for retail investors."

Placing of New Shares

Following completion of the placing of new shares by the Company at £0.08 (eight pence) per share raising gross proceeds of US$4,830,000 (as announced on 5 January 2016), the Company has received a number of expressions of interest from institutional and private investors wishing to subscribe for shares in the Company. In addition, a number of existing shareholders have indicated they will participate in any future funding round, to maintain their interest in the Company.

Accordingly, the Company is in advanced discussions with new and existing investors regarding a further placing to raise US$6-8 million at a price of £0.15 (fifteen pence) per share. The Company expects to conclude this further placing prior to 8 February 2016. A further announcement in this regard will be made in due course.

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 14 of the country's leading online video platforms, including Youku, Tudou, Baidu-owned iQiyi, Sina, and Sohu among others. It also boasts more than 3.4 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. 

Dream Incubator Inc.

Dream Incubator Inc. (TYO: 4310), "the business producing company," is a strategic consulting and business development firm that provides both capital and professional services to next-generation ventures as well as established enterprises.  Since the company's formation in 2000, and with its particular focus on IMC (Internet, Media, and Content), Dream Incubator has led a number of its 23 portfolio companies to successful IPOs across the globe.  In China, Dream Incubator focuses on cross-border investment, leveraging its strong network of leading Japanese enterprises, venture-backed companies, and government institutions. Dream Incubator maintains a wide range of strategic partnerships around the world, including with The Raine Group and Light Publicity Inc. among others. Further details regarding Dream Incubator Inc. are available at its website http://www.dreamincubator.co.jp/

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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