FastForward Innovations Limited – Half-year Report
FastForward Innovations Ltd, the AIM listed closed end investment fund with a focus on disruptive, high growth technology and life sciences businesses, is pleased to announce its interim results for the six months ended 30 September 2019.
Highlights from Investments
· Progress across diverse portfolio of disruptive, high growth technology and life sciences businesses
· EMMAC Life Sciences Ltd. raised £15 million via the successful issue of convertible loan notes, as announced post period end, on 15 October 2019
· Factom launched minable network of stablecoins, PegNet, as announced post period end, on 15 October 2019
· Successful closure of Juvenescence’s Series B funding round at the targeted $100 million, as announced on 19 August 2019
· Investment in Portage Biotech Inc. in exchange for previous holding in Intensity Therapeutics
· Leap Gaming partnered with established online betting and gaming platform Mansion Casino, as announced on 27 September 2019
Chairman’s Statement
This has been a positive period for FastForward as the value of its investments in fast-growing, industry leading businesses, specifically in the life science, health and technology arenas, become apparent.
Our aim is to give investors exposure to disruptive growth opportunities which they would otherwise be unable to access. To this end, we currently have nine investments of varying size and spanning several sectors, which we believe have the near-term potential to re-rate and thus significantly impact our NAV. Notably, FastForward does not charge management fees or take a fee on success; the intention is to either re-invest the capital generated or ultimately return value to investors by way of dividends, share-buybacks or other distributions.
During the period, several investee companies have been active. Our second investment in the medical cannabis sector, EMMAC Life Sciences Ltd. (“EMMAC”), raised £15 million via the issue of convertible loan notes. As Europe’s leading independent cannabis company, I am delighted with the response to EMMAC’s fundraise, which reflects the continuing attraction of EMMAC and its business plan to investors, despite the regulatory difficulties facing the sector.
Our investments within the technology sector are also showing promise. Post period end in October 2019, we announced that blockchain solutions provider, Factom, launched PegNet, an open, distributed, autonomous and minable stablecoin network for an asset backed payment cryptocurrency, that enables users to store value in any of the listed fiat currencies, precious metals or cryptocurrencies. Juvenescence, a biopharmaceutical company focused on therapeutic assets to target aging, regeneration and the diseases of aging, also made headway having raised $100 million through a Series B financing round. Further details of investee news can be found in the Investee Company Review section below.
On the corporate side, I have taken on the role of interim Chairman, in addition to my role as CEO, replacing Jim Mellon who resigned in August 2019 to focus on his other business activities, particularly Juvenescence in which we continue to be invested. I’d like to thank Jim for his service and assistance over the years and look forward to continuing to work with him at Juvenescence.
As our financial statements highlight, there is a disparity between the 30 September 2019 market cap of circa £11 million and the NAV of circa £20.4 million. It should be noted that whilst we have enjoyed gains on the back of foreign exchange rates between the Dollar and the Pound Sterling given the number of US investments, the NAV is liable to fluctuate in response to the effects on the exchange rate from the uncertainties of the US / China trade discussions. At home in the UK, the stock market is also experiencing uncertainties. We are hopeful that once there is more clarity politically and economically investors will follow the lead of foreign investors, who continue to see the value of London listed companies, and that our share price will respond accordingly.
Looking ahead, this is an exciting time for FastForward as our investee companies make notable progress towards building revenue/profits and becoming leaders in their niche markets, which we hope will ultimately lead to a liquidity event. In tandem, we continue to evaluate other exciting and innovative opportunities within the medical cannabis, wellness and technology fields where we believe value can be generated. I look forward to updating shareholders as our investment portfolio advances and strengthens.