Shares of FastForward Innovations (LON: FFWD) are down on Wednesday after the company said it has agreed to sell its entire interest in EMMAC Life Sciences as part of Curaleaf’s takeover of the company.
EMMAC, a cannabis firm, will be acquired by Curaleaf, a US provider of consumer cannabis products, for a base consideration of approximately $285 million.
FastForward has agreed to sell its stake in the company, 6.7 million shares and a £750,000 convertible loan note, for £5.04 million.
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Due to regulatory conditions surrounding Curaleaf’s involvement in the recreational cannabis market in North America, AIM-listed FastForward is unable to participate in the Curaleaf transaction and so will sell the shares and loan note to an unrelated party.
FastForward expects to record a profit on the Sale of approximately £1,931,459 and intends to use the proceeds for making further investments, following its investing policy.
“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,” commented Ian Burns, Chairman of FastForward Innovations.
Despite initially rising following the news, FastForward Innovations share price is now down 10.56% at 9.60p.
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