FastForward Innovations Limited Investee Company Update: Nuuvera (4342F)

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RNS Number : 4342F

FastForward Innovations Limited

20 February 2018

20 February 2018

FastForward Innovations Limited

("FastForward")

Investee Company Update:

NUUVERA ACQUIRES REMAINING 49% OF AVANTI RX

AMENDMENT TO ARRANGNEMENT AGREEMENT WITH APHIRA INC.

FastForward notes the announcement today by investee company Nuuvera Inc. ("Nuuvera" (TSXV: NUU)), a public company formed to capitalize on the global trend towards the legalisation of medical cannabis, in which FastForward currently has a holding of 3.4%. The announcement is set out below without material changes or adjustments:

Nuuvera Inc. (the "Company" or "Nuuvera") (TSXV:NUU) today announces that it has entered into a letter of intent to acquire the remaining 49% minority interest of Avanti Rx Analytics Inc. ("Avanti"), a subsidiary of the Company, from a single minority shareholder. As part of the acquisition, the Company also anticipates acquiring Avanti's facility at 135 Devon Road, Brampton, Ontario (together, the "Avanti Transaction"). Total consideration for the Avanti Transaction is expected to be approximately $43 million.

Ronald Schmeichel, Chairman of Nuuvera, said, "the acquisition of Avanti is an important step in the history of Nuuvera and is expected to result in synergies at the combined Nuuvera / Aphria which will enhance the value of the Arrangement to shareholders of Nuuvera."

Accordingly, in order to fund the Avanti Transaction, Nuuvera and Aphria Inc. ("Aphria") have agreed to amend the previously announced arrangement agreement (the "Arrangement Agreement") to reduce both the required level of unrestricted cash and the cash consideration payable to holders of the Company's common shares (each a "Nuuvera Share"). The consideration has been reduced from $1.00 in cash plus 0.3546 of an Aphria common share (an "Aphria Share") for each Nuuvera Share to $0.60 in cash plus 0.3546 of an Aphria Share for each Nuuvera Share provided that the cash consideration will be increased to the extent the Company's unrestricted cash exceeds the revised required level (the "Amendment"). All other terms of the Arrangement Agreement remain substantially unaffected.

As previously announced, Aphria had secured irrevocable hard lock-ups (the "Lock-Ups") from Nuuvera shareholders (the "Lock-Up Shareholders") representing approximately 57% of the then current outstanding Nuuvera Shares to vote in favour of the Arrangement Agreement. In connection with the Amendment, Aphria had sought and received the consent from certain of the Lock-Up Shareholders that, together with Nuuvera Shares already owned by Aphria, represent over 65% of the current outstanding Nuuvera Shares, and over 57% of the "minority shareholders", to permit the reduction of consideration under the Arrangement Agreement.

In connection with the Amendment, the board of directors of Nuuvera (the "Board") has obtained legal and financial advice, including a fairness opinion from Canaccord Genuity Corp., that, as of February 19, 2018, and subject to the assumptions made, matters considered and limitations and qualifications on which such opinions are based, the consideration to be received by Nuuvera shareholders is fair, from a financial point of view, to such shareholders (other than Aphria). The Board has reaffirmed its recommendation that shareholders vote in favour of the resolution to approve the plan of arrangement at the special meeting of shareholders currently scheduled to take place on March 20, 2018.

About Nuuvera

Nuuvera is a global cannabis company founded on Canadian principles, and built with the whole world in mind. Nuuvera is currently working with partners in Germany, Israel and Italy, and is exploring opportunities in several other countries, to develop commercial production and global distribution of medical grade cannabis in legalized markets. Through its subsidiaries, ARA - Avanti and Avalon Pharmaceutical Inc., Nuuvera holds a Dealer License (GMP) under the Narcotic Control Regulations and Office of Controlled Substances. Nuuvera is currently in the final stages of the Health Canada review process to become a Licensed Producer of medical marijuana under the ACMPR, and has recently received its "letter to build" approval.

About Nuuvera

CONTACTS:

 
FastForward Innovations Limited [e-mail] 
 Sue Saunders/ Ian Burns 
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Beaumont Cornish Limited (Nomad) Tel: [phone] 
 James Biddle / Roland Cornish 
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Optiva Securities Limited (Broker) Tel: [phone] 
 Ed McDermott 
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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 Ltd. 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 assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

February 20, 2018 10:26 ET (15:26 GMT)