FastForward NAV jumps – FastForward Innovations has published results for the year ended 31 March 2018.
Highlights:
- Net assets of GBP13,534,000 (2017: net assets of GBP10,101,000).
- NAV per share increased by a third from 7.60p to 10.18p.
- Three new investments in the year, including a significant investment in a Canadian medical cannabis business
- Successful sale of the cannabis investment post year end for a gain of nearly 500%.
- Expanded the board with the appointment of Ed McDermott on 12 February 2018.
- Brought in a significant and strategic investor with Peter Saladino becoming the equal largest shareholder of FFWD with 9.37% acquired at 17.6p. on 7 March 2018.
- The company became an Authorised Closed-ended Investment Scheme on 3 May 2018.
Nuuvera, their largest mark to market investment, was listed and quickly acquired by Aphria Inc. creating a significant gain for Fast Forward which was realised subsequent to the current year end.
The chairman had this to say: “FastForward is, in some ways, a frustrating company in that while your board is working every day to enhance the value of current investments and to evaluate potential new investments, this work must be carried out confidentially particularly in the new regulatory environment. This can frustrate shareholders and commentators, but be assured that, as your chairman, I am always pushing my colleagues to ensure that all pertinent information we are able to release is published promptly. As a number of our portfolio assets mature, I believe the delivery of news from our investee companies will be more regular and of a more material nature.”
[QD comment: At the time of writing, FFWD’s shares are trading on a premium of 31% to the NAV at 31 March 2018. The share price has been very volatile over the past year and a bit, having moved in a range between 8.625p and 20p. Many investors seem to be second guessing the board, confident that there is hidden value in the portfolio. This may be true, if FFWD can deliver a repeat of this year’s NAV increase in the current financial year, then the shares are fairly valued. There is no guarantee that they can pull this off, however, and it is equally likely that a disappointment could lead to the emergence of a discount. Caution advised.]
FFWD : FastForward NAV jumps