SEED INNOVATIONS LIMITED

Capital/Financing Update • Jan 25, 2024

National Storage Mechanism | Additional information

RNS Number : 9582A

Seed Innovations Limited

25 January 2024

25 January 2024 

SEED Innovations Limited 

("SEED" or the "Company") 

Investee Company Update: Avextra AG Raises €3.3 million

SEED's shares in Avextra now have an implied valuation of €1,650 per share; a 167% increase Euro value over cost price

SEED Innovations Ltd, the AIM-quoted company investing in fast-growing and industry-leading businesses with a focus on the medical cannabis, health, and wellness space, is pleased to announce a successful fundraise of €3.3 million by its portfolio company, Avextra AG ('Avextra'), a German-based, European vertically integrated medical cannabis company.  This capital raise gives SEED an implied valuation (subject to reassessment at the next Balance Sheet date) on its Avextra investment of €1,650 per share; a 167% increase in Euro value over cost price. SEED did not participate in this fundraise.

SEED currently holds 2,242 shares in Avextra representing approximately 2.9% per cent of Avextra.

Highlights

·      Avextra recently raised from existing and new investors €3.3 million cash at a price of approx. €1,650 per share. This implies a post-money valuation of Avextra of approx. €127 million.

·      In addition, c.€19.1 million of funds previously raised through CLNs, along with their accrued interest, were converted into equity at a discounted price of approx. €1,320 per share.

·      SEED purchased Ordinary shares in Avextra at €604 per share in January 2021 and Preferred shares at €980 per share in March 2022. The blended cost per share was c.€617 per share, with a total cost of the shares currently held of €1.42 million, equivalent to approximately £1.21 million (based on the FX rates at the times of the purchases).

·      Following this transaction, SEED's currently held shares in Avextra have an inferred value of €1,650 per share, being a 167% increase in Euro value over the cost price.

·      This raise increases the implied value of SEED's holding in Avextra by approximately £1.2 million to €3.7 million (circa £3.15 million), compared to the previous carrying value of £1.94 million as reported in SEED's Interim Financials (RNS 22 November 2023).

Ed McDermott, CEO of SEED, commented: "SEED is pleased to follow the success of Avextra as it continues to attract investment at higher valuations. With this recent fundraise having been done at a significantly higher valuation to our original investment, the increased value of our existing holding in Avextra more than offsets the negative effects surrounding other investments that we've reported over recent months. I would like to take the opportunity to wish Avextra every success in their continued development of their business."

- Ends -

For further information on the Company please visit:  www.seedinnovations.co   or contact: 

Ed McDermott  Lance de Jersey	SEED Innovations Ltd	E: info@seedinnovations.co
James Biddle  Roland Cornish	Beaumont Cornish Limited,  Nomad	T: (0)20 7628 3396
Isabella Pierre  Damon Heath	Shard Capital Partners LLP  Broker	T: (0)20 7186 9927
Ana Ribeiro   Isabelle Morris	St Brides Partners Ltd,  Financial PR	E: info@stbridespartners.co.uk

Notes 

Seed Innovations Ltd 

SEED Innovations is an AIM quoted investment company focused primarily on disruptive high growth life sciences and technology businesses particularly within the medical cannabis arena. The Company's strategy is to identify early-stage opportunities that have an upcoming investment catalyst and grow its portfolio in terms of value whilst limiting the number of investee companies to a level where relevant time can be devoted to each. 

About Avextra AG

Avextra is one of Europe's leading vertically integrated suppliers of high-quality cannabis-based medicines. Founded in 2019 and based out of Germany, the company focuses on the production of precisely formulated cannabis-based medicines. Avextra controls the entire value chain - from cultivation in Portugal to EU-GMP certified extraction and manufacturing in Germany. Avextra operates across continental Europe through an expansive distribution network of multiple channels and assets strategically developed for these key markets.

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