RCS - Seed Innovations Ltd - 2025 New Year Statement

Seed InnovationsAnnouncement

16/01/2025 07:00

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RNS Number : 4522T  Seed Innovations Limited  16 January 2025

RNS Reach - non-regulatory announcement

 

16 January 2025

SEED Innovations Limited

("SEED" or the "Company")

 

2025 New Year Statement

 

Driving shareholder value through strategic portfolio management

 

SEED Innovations Ltd, an AIM-listed investment firm providing access to
high-growth, disruptive life sciences and technology ventures typically out of
reach for everyday investors, is pleased to share a 2025 New Year Statement
from its CEO, Ed McDermott.

 

"As we move into the new year, I reflect on a difficult 2024, which saw many
challenges but also some strides forward including the delivery of positive
results from SEED's largest portfolio companies and the second instalment of
proceeds from the sale of Leap Gaming received in April 2024. This enabled us
to reward our shareholders with a share buyback programme and an inaugural
special dividend.

 

"We expect 2025 to be somewhat more dynamic as we continue to actively manage
our portfolio, encompassing liquid  and longer term opportunities. To support
this, we are currently conducting due diligence on several promising prospects
across a range of sectors.

 

"Our short-term trading strategy will remain industry-agnostic, while our
traditional venture strategy will continue prioritising seeking significant
returns on larger investment sums. There continues to be a substantial capital
deficit to meet the needs of growth companies globally, which has caused
innovation to take a step back in recent years. However, I see the next 2-3
years as an opportune time to accelerate the growth of carefully selected
ventures with the potential to scale into meaningful exits, ideally within 24
months of investment.

 

"Despite projections of low growth for the UK in the coming years, there are
still sectors of considerable interest. For instance, in fintech, regulatory
and compliance demands are driving significant expenditure from major
institutions.

 

 "As mentioned, our portfolio companies continue to move forward despite the
challenges of raising capital.

 

·    Clean Food Group: Raised c.£2.5m in March 2024 at SEED's carrying
value of 16.5p per share, supporting our valuation.  Furthermore, it
announced a partnership with THG Labs (part of The Hut Group) in October,
hinting at further development of its strategy, which we hope may be followed
by a further uplift in valuation in 2025.

·    Inveniam: Announced a significant partnership in December with, and
investment from, a leading global AI investor, G42. Whilst details of the
investment by G42 have not yet been made public, we are hopeful that this will
translate into a modest uplift in the carrying value of Inveniam at the next
valuation point.

·    Little Green Pharma: Continued its growth with a company
record-breaking half year performance announced in November. In December, it
announced plans to acquire HH (Australia) Pty Ltd, which operates a nationally
focused medicinal cannabis distribution business across Australia aligning
with its strategy of capitalising on current market conditions to acquire
sustainable medicinal cannabis businesses at attractive valuations.

·    Juvenescence: Advanced its portfolio of companies focused on
longevity, positioning it for success in this fast-growing healthcare
landscape.

·    Avextra: Announced a €3.3m fundraise early in 2024 at above SEED's
carrying value, supporting our carrying value.

 

"In addition, a new investment made in August in Pantheon Resources, as part
of SEED's short-term trading strategy, resulted in a successful exit in
November, yielding a 35% profit or approximately £87k.

 

"Regarding our market performance, our current market capitalisation is
approximately £3.18m, while as of November, our cash reserves alone exceeded
£3.8m, and our net asset value ('NAV') was estimated at £10.6m as of 30
September 2024. These figures clearly indicate that we are trading at a
significant discount to our intrinsic value.

 

"With a robust cash reserve, coupled with our dynamic portfolio and promising
investment pipeline, I am confident that 2025 will be a year of significant
progress for SEED. I would like to extend my thanks to our team and
shareholders for their unwavering support as we work towards unlocking SEED's
full potential and aligning its stock valuation with the value of its assets.

 

"Wishing you all a prosperous and successful 2025."

 

Ed McDermott, CEO

 

- Ends -

 

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

 

 Ed McDermott        SEED Innovations Ltd             info@seedinnovations.co 

 Lance de Jersey                                       

 James Biddle        Beaumont Cornish Limited,        (0)20 7628 3396

 Roland Cornish      Nomad

 Isabella Pierre     Shard Capital Partners LLP       (0)20 7186 9927

 Damon Heath         Broker

 Ana Ribeiro         St Brides Partners Ltd,          seed@stbridespartners.co.uk

 Isabel de Salis     Financial PR

 Seb Weller

 

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.

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