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FastForward Innovations sells entire holding in Cryptologic
8th Jan 2020 15:44
(Sharecast News) - Technology and life sciences investment fund FastForward Innovations has completed the sale of its entire holding of debentures in investee company Cryptologic Corporation, formerly Vogogo, it announced on Wednesday.
The AIM-traded firm sold its total holding of 2,300,000 debentures in Cryptologic) at an average price of 66 Canadian cents (39p) per debenture, with total realised cash proceeds being CAD 1.51m (£0.88m).
In addition, the company said it had received coupon payments and accrued interest totalling CAD 0.26m over the holding period.
The purchase price of each debenture on investment in June 2018 was CAD 1.00, for a total cost of CAD 2.3m.
As it indicated in its results for the period ended 31 March, FastForward carried the debentures at a significantly impaired valuation of CAD 0.86m, following the poor performance of Cryptologic, attributed to the decline in the price of Bitcoin price in late 2018 and early 2019, and a loss of attraction in the cryptocurrency space in general.
The firm said that impairment methodology was carried through the interim valuation provided in September.
As a result, the sale proceeds and coupon payments received since March represented a total gain of CAD 0.81m, or 94%, over the March net asset value, but a total loss on investment of CAD 0.53m, or 23%, over the entire holding period, excluding foreign exchange movements.
The board said the sale was in line with its strategy to focus investments specifically in the life science, health and technology arenas.
As it announced on 6 August, 12 August and 26 September, Cryptologic - a Canada-listed company currently involved in cryptocurrency mining - was seeking to pivot into the Canadian cannabis industry by way of a proposed acquisition of assets from the Wayland Group, and the sale of its Bitcoin mining business.
The proposed resultant business of Cryptologic was not in line with FastForward's investment mandate, and would have precluded the company's continued involvement due to UK regulatory constraints.
FastForward said that as a result, it had been looking at opportunities to realise its investment in Cryptologic in line with its "evolved strategy" to focus investments more specifically in the life science, health and technology arenas, and the sale of its entire holding of debentures in Cryptologic was reflective of that .
The company said it would deploy the proceeds of the sale in line with that strategy.
"We have been looking for opportunities to dispose of our interest in Cryptologic since the announcement that it would be considering the acquisition of Wayland and I am therefore delighted to have completed the sale in a timely manner," said FastForward director Ed McDermott.
"Whilst we have made a loss over the holding period, given the difficult trading conditions with serious impacts on profitability due to considerable fluctuations in the Bitcoin price, we are pleased to have exited in the position that we have."
At 1538 GMT, shares in FastForward Innovations were up 3.16% at 8.15p.
The AIM-traded firm sold its total holding of 2,300,000 debentures in Cryptologic) at an average price of 66 Canadian cents (39p) per debenture, with total realised cash proceeds being CAD 1.51m (£0.88m).
In addition, the company said it had received coupon payments and accrued interest totalling CAD 0.26m over the holding period.
The purchase price of each debenture on investment in June 2018 was CAD 1.00, for a total cost of CAD 2.3m.
As it indicated in its results for the period ended 31 March, FastForward carried the debentures at a significantly impaired valuation of CAD 0.86m, following the poor performance of Cryptologic, attributed to the decline in the price of Bitcoin price in late 2018 and early 2019, and a loss of attraction in the cryptocurrency space in general.
The firm said that impairment methodology was carried through the interim valuation provided in September.
As a result, the sale proceeds and coupon payments received since March represented a total gain of CAD 0.81m, or 94%, over the March net asset value, but a total loss on investment of CAD 0.53m, or 23%, over the entire holding period, excluding foreign exchange movements.
The board said the sale was in line with its strategy to focus investments specifically in the life science, health and technology arenas.
As it announced on 6 August, 12 August and 26 September, Cryptologic - a Canada-listed company currently involved in cryptocurrency mining - was seeking to pivot into the Canadian cannabis industry by way of a proposed acquisition of assets from the Wayland Group, and the sale of its Bitcoin mining business.
The proposed resultant business of Cryptologic was not in line with FastForward's investment mandate, and would have precluded the company's continued involvement due to UK regulatory constraints.
FastForward said that as a result, it had been looking at opportunities to realise its investment in Cryptologic in line with its "evolved strategy" to focus investments more specifically in the life science, health and technology arenas, and the sale of its entire holding of debentures in Cryptologic was reflective of that .
The company said it would deploy the proceeds of the sale in line with that strategy.
"We have been looking for opportunities to dispose of our interest in Cryptologic since the announcement that it would be considering the acquisition of Wayland and I am therefore delighted to have completed the sale in a timely manner," said FastForward director Ed McDermott.
"Whilst we have made a loss over the holding period, given the difficult trading conditions with serious impacts on profitability due to considerable fluctuations in the Bitcoin price, we are pleased to have exited in the position that we have."
At 1538 GMT, shares in FastForward Innovations were up 3.16% at 8.15p.