FastForward Innovations Ltd (LON:FFWD) said a revised chapter 11 plan of reorganisation for its investee company Factom, which allows the company’s US$6mln simple agreement for future equity (SAFE) note to be converted to equity in Factom, has been approved by the US bankruptcy court for the district of Delaware and Factom’s shareholders.
SAFE notes are convertible securities which allow the investor to buy shares in a future priced round, similar to options and warrants. SAFE notes are often used by start ups as they are not classed as debt and do not accrue interest.
As a result of the approval, the investment firm said it expects the conversion of the SAFE note to occur in the coming days, and, following the conversion, its will hold around 6.3mln shares in Factom, or 30.4% of the share capital.
FastForward said while its interest in Factom has been written down to zero, the approval of the reorganisation plan forms part of a continuing action to “recover value for shareholders from its investment in Factom”.
Shares in FastForward were steady at 11.5p in early deals on Friday.
–Adds details of SAFE notes and updates share price–