The share price of FastForward Innovations (AIM: FFWD) fell by nearly 10 percent after the conditional sale of its investment in EMMAC following the acquisition of EMMAC by Curaleaf.
Fast Forward Innovations is an AIM-listed investment company and is set to gain proceeds of just over £5m from the sale.
However, the kicker is that due to regulatory restrictions, FastForward will not have an interest in Curaleaf shares following the transaction who have a m.cap of over CAD $12bn.
While disappointing, investors will still have a certain amount of optimism in FastForward; it is believed that it will generate nearly £2m of profit on its original investment in EMMAC for a return of 1.86 times.
The company will now be looking to use the proceeds to make further investments in line with its investing policy.
Commenting on the situation was Ian Burns, Chairman of FastForwards Innovations who emphasised its very much game on for Fast Forward and its evidence that FFWD knows how to pick winners:
“This is an extremely positive outcome for FastForward and we are delighted to have made a significant return on our original investment in EMMAC, further increasing our confidence in our investment strategy and our ability to deliver financial gains, particularly in the medical cannabis, cannabinoid wellness and life sciences sectors.
“The current legal and regulatory framework within which we work makes it impossible for us to continue to invest in the EMMAC/ Curaleaf story despite our confidence in this investment.
“The proceeds from the Sale, together with our existing cash resources means we are extremely well placed to make significant further investments to expand our portfolio in what is currently a very active time in the market.
“This is the second liquidity event that has occurred recently within our portfolio, following in very close succession after Yooma’s reverse take over of Globalive as announced on 11 February 2021. With two of our other investee companies also currently gearing up for liquidity events, we hope to continue this momentum and achieve similar outcomes in these other investments in due course.”