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.