FastForward Innovations Limited (LON:FFWD) has invested a further A$2.8mln (£1.5mln) in its portfolio company Little Green Pharma (LGP) and sold some of its shares in Nasdaq-listed Portage Biotech for a net gain of US$551,000.
The investment in ASX-listed LGP is part of a A$27.2mln placing at A$0.60 per share by the medicinal cannabis business to part-fund the acquisition of a fully-operational cultivation asset in Denmark, which was announced last week.
Following the investment, FFWD has a holding of 7,324,796 ordinary shares in LGP, representing 3.15% of its enlarged issued share capital.
Ed McDermott, CEO of FastForward, said: “LGP are ambitious in their growth strategy and to date have delivered beyond our expectations. We are pleased to further support them in this fundraise as part of a very significant development in their history, which will contribute to increasing cultivation and manufacturing capacity accelerating their planned expansion by up to two years.
“With strong management, a broadening range of operations and being well capitalised, I believe they are well positioned to build on the very solid foundations already in place in Australia and increasingly so in Europe and with access to the Danish Facility now secured, this will provide immediate access to medical grade product at volumes that will allow LGP the opportunity for further growth.”
In a separate announcement, FFWD said it has sold 18,183 shares in Portage Biotech that it owned at an average price of roughly US$40.30, realising net proceeds of US$732,952.
This followed the original cost price of the shares in FFWD’s books of $10 per share.
FFWD still holds a total of 50,123 ordinary shares in Portage, a stake of 0.4% that has a valuation of roughly US$1.3mln (£0.9mln).
This compares to a valuation of $1.05mln for the 104,906 shares held on the company’s most recent balance sheet at 30 September at the then market price of $10 per share.
McDermott added: “We are pleased to have realised part of our investment in Portage which has resulted in a return of some four times our original investment. This will provide us with further balance sheet resource enabling us to invest in other businesses that will bring value to shareholders.”
Shares in FFWD were up 2% to 8.3p on Monday morning.