Kanabo Group PLC and Cellular Goods PLC share sales give FastForward Innovations

() and () proved to be fruitful investments for FastForward Innovations Ltd (LON: FFWD) which today confirmed the profitable exit from its shareholding in both companies.

FFWD saw a 223% return on its investment in Kanabo and a 315% return on its investment in Cellular Goods, according to a stock market statement on Thursday.

It realised a £194,414 gross profit as it exited the pair of cannabis investments, which both in recent weeks floated in London amidst high demand.

Both investments were turned around quickly, though FFWD noted that it had originally sought a larger position in each company.

“Whilst we were disappointed to be heavily scaled back due to both placings being oversubscribed, we are delighted to have made such significant returns on our investments in Kanabo and Cellular Goods in a short timeframe,” said Ed McDermott, FFWD chief executive.

READ: FastForward set for record return as it agrees to sell EMMAC interests

In February, FFWD bought £62,500 worth of Kanabo shares in its oversubscribed placing, which raised a total of £6mln with shares priced at 6p each, and, earlier this week it sold at 21.1p to make a £139,851 profit.

It bought £17,215 of shares in the oversubscribed placing for David Beckham-backed cannabis consumer products group Cellular Goods which raised a total of £13mln priced at 5p per share, and exited this week at 20.9p to make a profit of £54,562.

The Kanabo and Cellular Goods share sales mark a trio of successful divestments in the cannabis sector this week.

On Wednesday, FFWD announced it was selling its entire interest in , which is being acquired by North American cannabis consumer products group Curaleaf.

FFWD noted that its decision was influenced by regulatory conditions, which result from Curaleaf’s involvement in the recreational cannabis market in North America.

The transaction sees FFWD sell 6.7mln shares in EMMAC as well as a £750,000 convertible loan note for around £5.04mln, to record a £1.9mln profit (versus a September 2020 valuation). It will mark a 1.86x return on the company’s original investment.

Proceeds from the cannabis deals are earmarked for reinvestment, the company highlighted.

“With our already strong balance sheet, the proceeds from these sales, along with the significant funds to be received from the sale of EMMAC as announced yesterday, will put FastForward in a very strong cash position and enable us to invest in other new and exciting businesses that will bring value to shareholders. We hope to provide further updates on developments in this regard in due course,” Ed McDermott added.