FastForward Innovations Ltd, (LON:FFWD) said it has been notified by investee company, Factom Inc. that in a meeting on March 31 its board concluded that, in the absence of further funding, they now needed to begin the process of assignment of assets for the benefit of creditors and, as a result, receivers will be appointed.
In a statement, the AIM-listed group, which is focused on making investments in fast-growing and industry-leading businesses, noted that the action will be treated as a Dissolution Event under the terms of its $6mlm Simple Agreement for Future Equity (SAFE) and, as such, FastForward will become the largest creditor representing well over 90% of the creditors.
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As such, FastForward added, it shall control the receivership process and is currently seeking to appoint a receiver to take control of Factom's assets including all intellectual property (IP) upon which the Factom Protocol operates.
The company pointed out that its interest in Factom was divided between Series Seed shares and the SAFE valued at £581,000 and £4,880,000 respectively as at September 30, 2019.
In light of the receivership, it added, it is likely that the Series Seed shares shall have no carrying value, likewise, the value of the SAFE will also need to be reviewed dependent on the outcome of the receivership, the resulting value of the assets acquired and the ability to realise value out of them.
FastForward said that as soon as a receiver is appointed and the process and timetable is understood the company will make further updates, in the meantime the directors of FastForward are proactively working with previous Factom management in evaluating options to maximise any value for the assets and the IP.
FastForward director, Ed McDermott commented: "We are extremely disappointed with this news from Factom. In light of this Dissolution Event under the SAFE we are taking swift action to protect our position as best we can in the circumstances albeit the ability to generate any meaningful return is uncertain.
“As we go through the Receivership process and understand more of the events that led to this position our position as investors in Factom is expressly reserved.”