FastForward Innovations Ltd (LON:FFWD) said a revised chapter 11 plan of reorganisation for its investee company Factom, which allows the companys 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 Factoms 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.
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