REG - Seed Innovations Ltd - Avextra AG Successfully Raises EUR 17 million

Seed InnovationsAnnouncement

15/03/2023 13:00

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RNS Number : 0918T  Seed Innovations Limited  15 March 2023

15 March 2023

 

SEED Innovations Limited

("SEED" or the "Company")

Investee Company Update: Avextra AG Successfully Raises €17 million

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 note an announcement released by its portfolio
company, Avextra AG ('Avextra'), a German-based, European vertically
integrated medical cannabis company. Avextra has raised a total of
approximately €17 million* (c. £15M GBP million at today's exchange
rate) from existing investors, the full management team, and new additional
European investors via a convertible loan note ('CLN').

Following this fundraise, SEED's holding in Avextra (formerly Eurox Group) on
a fully diluted basis totals approximately 6.6 per cent. SEED did not
participate in this fundraise.

* €17 million total includes the previously announced €7.4M from the first
close of this round (RNS of 4 October 2022).

Highlights:

·    c.€17 million in new capital raised by Avextra, making the total
raised in aggregate since Seed's initial investment approx. €21.4 million
(RNS of 5 July 2021) (c.£18.8M GBP million at today's exchange rate)

·    Investors' infusion of c.€17 million in Avextra endorses its
R&D-focused, pan-European strategy and execution ability, reflecting high
confidence. It establishes Avextra as one of the limited R&D and
IP-focused players in the global cannabis market.

·    The CLN is convertible at a 20% discount to a future fundraise, or at
maturity on 31 January 2024 at the same valuation as the previous fundraise,
being a 62% premium to SEED's initial investment, as announced by SEED on 6
April 2022.

·    Inferred value in the carrying value of SEED's holding in Avextra
remains at c. €5 million (c.£4.4 GBP million at today's exchange rate) as
last reported as at 30 September 2022.

·    The fundraise will be used to expand sales and distribution channels
of Avextra's product portfolio into new European markets, expedite
Cannabis-based medication clinical trials, advance its R&D activities as
well as further its expansion into the German market.

 

The announcement in full can be accessed from the following link:
http://bit.ly/42bYXRZ (http://bit.ly/42bYXRZ)

 Ed McDermott, CEO of SEED, commented: "SEED is delighted to announce the
latest milestone achieved by its investee company, Avextra, in successfully
securing a significant €17 million capital raise in its latest funding
round.

"Despite a soft market for raising funds, the substantial amount raised is a
testament to investors' confidence in Avextra's growth and prospective future.

"Avextra is making remarkable headway with its operational advancements,
vertically integrated production capabilities, and amplified R&D
undertakings. The company is now well-financed for its future growth
endeavours in the European medical-cannabis markets. The significant funding
secured positions Avextra to become one of the scarce R&D and IP-driven
players in the worldwide cannabis market and we look forward to following and
supporting their progress."

- Ends -

For further information on the Company please
visit:  www.seedinnovations.com (http://www.seedinnovations.com/)    or
contact:

 Ed McDermott       SEED Innovations Ltd         E: info@seedinnovations.co

 Lance de Jersey
 James Biddle       Beaumont Cornish Limited,    T: (0)20 7628 3396

 Roland Cornish     Nomad
 Isabella Pierre    Shard Capital Partners LLP   T: (0)20 7186 9927

 Damon Heath        Broker
 Catherine Leftley  St Brides Partners Ltd,      E: info@stbridespartners.co.uk

 Isabelle Morris    Financial PR

 Max Bennett

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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