FastForward Innovations invests CA$3m in medicinal marijuana company

AIM-listed FastForward Innovations has invested in Canadian medicinal marijuana company Nuuvera Corp in a bid to capitalise on the increasing global deregulation of the drug.

FastForward paid CA$3m for a 4.7% stake in Nuuvera as part of a CA$43.65m equity fundraise, of which it subscribed for 3m Nuuvera shares at CA$1 each.

The proceeds raised by Nuuvera will be used to advance applications for licensed producer and licensed dealer licenses in Canada, possible acquisitions of strategic production licenses, development of distribution channels, brand development, and for working capital purposes.

FastFoward said that Nuuvera also plans develop a state-of-the-art production facility in Canada and is in late-stage talks to receive a significant government backed incentive programme.

FastForward chief executive Lorne Abony, who has joined Nuuvera’s board, said: "There is a global secular trend toward the legalization of marijuana. Like me, the whole board believes recent deregulation of marijuana for medical use in Canada, and other jurisdictions, presents a huge market opportunity. We are delighted that FFWD shareholders are able to participate in this exciting sector and believe that this investment will prove a huge success for the Company.

“Demand for the fundraising completed by Nuuvera has been unprecedented in my experience, and some of the biggest names in Canadian business, with huge success behind them, are shareholders of the company. It is an enormous validation of the FastForward strategy and mission statement that we have invested CA$3m in this deal, providing UK investors with early market access to deals that would otherwise be closed to them."

FastForward has now fully invested its available cash resources and are working to realise exits for existing investments above cost over the next 12-18 months as well as provide the additional cash.

Shares in FastForward Innovations were up 0.98% to 10.35p at 1043 GMT.