REG - Seed Innovations Ltd - Investee Company Update: Avextra AG Raises €3.3m

Seed InnovationsAnnouncement

25/01/2024 15:15

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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 (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
 Ana Ribeiro         St Brides Partners Ltd,          E: info@stbridespartners.co.uk

 Isabelle Morris     Financial PR

 

 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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