Acquisition of shares in Vemo Education, Inc

RNS Number : 8037J

FastForward Innovations Limited

21 December 2015

 

21 December 2015

FastForward Innovations Limited

("FastForward" or the "Company")

Acquisition of shares in Vemo Education, Inc.

FastForward takes its interest in EdTech company to 12.5%

Proposed Placing of New Shares

The Board of FastForward Innovations Limited ("FastForward" or the "Company") is pleased to announce that it has today signed a share purchase agreement to acquire an additional 527,059 shares of education technology company Vemo Education, Inc. ("VEMO").  On 23 November 2015, the Company previously announced that it had acquired 1,000,000 shares of VEMO representing 8.2 per cent. of VEMO issued shares (on a fully diluted basis).  Including the new shares, the Company's interest in VEMO's issued shares will increase to 12.5 per cent. (on a fully diluted basis).

The shares in VEMO are to be acquired from VEMO founder, Mr Lorne Abony, with completion of the acquisition set for 5 January 2016 (the "Acquisition").  The Company will pay Mr Abony US$1.00 per share (the same as the subscription price paid by the Company on 23 November 2015), for an aggregate consideration of US$527,059 (the "Purchase Price").  The Purchase Price is to be settled by the Company by the issue of 4,328,425 new shares of FastForward, each issued at an implied price of £0.08 (eight pence) (having a total implied value of £346,274) (the "Consideration Shares"). The Company will issue the Consideration Shares following completion on 5 January 2016 and a further announcement will be made then.

Placing of New Shares

In addition to the Acquisition, the Board of the Company is finalising a proposed placing of new shares by the Company at a price of £0.08 per share to raise additional capital for further investments and working capital (the "Placing").  It is expected the Placing will be finalised prior to 31 December 2015.  A further announcement will be made in due course.

Proposed Appointment of Mr Lorne Abony

In addition to the Acquisition and the Placing, the Company proposes to appoint Mr Abony as a director of the Company subject to all regulatory approvals being received. A further announcement, including the relevant AIM disclosures, will follow on the formal appointment of Mr Abony.

Mr. Lorne Abony, the founder of VEMO, is a well-known technology and media entrepreneur whose many successful tech ventures included Fun Technologies, an AIM listed company which he founded and sold for US$484 million to Liberty Media in 2005. In his role as CEO of Mood Media Inc, a public company which was listed on both the Toronto and London Stock Exchanges, Mr. Abony oversaw offices in 48 countries, employing over 2,300 employees.   In addition to his board seat at VEMO, he is also an executive director of Glu Mobile and Chairman of its Strategy Committee.  As the founder and CEO of a number of successful ventures, Mr. Abony has raised in excess of US$1 billion through public and private debt and equity markets.

Mr Abony will participate in the Placing.

Commenting on the acquisition, FastForward Co-Chairman Mr Stephen Dattels noted:

"The acquisition of additional shares in VEMO by the Company demonstrates the confidence the Board has in the VEMO business plan, and in particular its outstanding management team.  As VEMO signs-up universities and colleges it will grow its assets under management, and realise material revenues in the next 12-24 months. The fact Lorne has agreed to join the Board of FastForward is further fantastic news.  His track record is superb and he brings valuable expertise to add to that of my Co-Chairman Jim Mellon."

About Vemo Education Inc.

VEMO is an Education Technology company working with U.S.-based colleges and universities to provide a technology platform for income-based student financing programmes in the US$1.3 trillion student debt market in the United States.  Vemo was founded to develop income share agreement ("ISA") programmes and deferred tuition plans and partnering with higher education institutions to make these funding options available to students.

VEMO has a robust business model which will see it manage the funds of Universities and colleges, trusts and other scholarship and legacy programmes, and receive fees based on the assets it has under management at any time.  The Board believes will provide it with significant revenue streams as the business evolves.  As the originator and master servicer of income share agreement programmes and deferred tuition plans, VEMO's revenues will consist of recurring fees paid to the company directly by colleges and universities. 

VEMO is currently in negotiations with a number of higher education institutions across the U.S. to put in place ISA programmes and deferred tuition plans.

For the seven months ended 31 October 2015 VEMO had nil revenue and incurred a trading loss of US$988,967 for the period.  As at 31 October 2015, VEMO had total net assets of US$1,048,473.

Further details regarding VEMO are available at its website www.vemo.com or contact:

Vemo Education Tel: [phone] Kerry Schneider

For further information please visit www.kualainnovations.com or contact:

FastForward Innovations Limited Tel: [phone] Elysium Fund Management Limited

Beaumont Cornish Limited (Nomad) Tel: [phone] James Biddle / Michael Cornish

Peterhouse Corporate Finance Limited (Broker) Tel: [phone] Guy Miller / Lucy Williams

CAUTIONARY STATEMENT

The AIM Market of London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding potential values, the future plans and objectives of FastForward Innovations Limited and the companies in which it invests. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.

Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. FastForward Innovations Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

 

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