REG - Seed Innovations Ltd - Leap Gaming Update – Offer Declared Unconditional

Seed InnovationsAnnouncement

11/04/2023 07:00

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RNS Number : 6790V  Seed Innovations Limited  11 April 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR').

 

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

11 April 2023

SEED Innovations Ltd ("SEED" or, the "Company")

 

 Leap Gaming Update - Offer Declared Unconditional

Divestment will secure approximately €5.8m Cash to the Company over 2 year
period

 

SEED Innovations Ltd, the AIM quoted company focusing on making investments in
fast growing and industry leading businesses with a focus on the medical
cannabis, health and wellness space, is pleased to announce that, further to
the announcement of 7 December 2022, the sale of portfolio company Fralis LLC
(trading as Leap Gaming, 'Leap'), is now unconditional and completion has
occurred ('Completion').

 

As previously announced, Leap entered into a conditional Sale & Purchase
Agreement ('SPA') for the sale of the remainder of Leap to existing unitholder
IMG Arena US, LLC ('IMG') based upon an enterprise value of €14 million (the
'Leap Transaction').  IMG is an existing investor in, and was the second
largest owner of, Leap.  Following the transaction, Leap will be wholly owned
by IMG.

 

Sale proceeds due to SEED will be received by the Company in the coming days
as follows:

 

·    €2.8 million being 50% of the sale proceeds due to SEED under the
agreement (and after adjustment for working capital and repayment of debt);
and

 

·    €268,000 being repayment of the Company's €250,000 term loan (as
announced on 8 June 2022), together with accrued interest.

 

The second tranche of sale proceeds, being €2.8 million (calculated as the
remaining 50% of the sale proceeds and subject only to any claims under
customary warranties & indemnities,), is expected to be received in April
2024, being the 12-month anniversary of Completion, as per the terms of the
SPA.

 

The Company intends to use the proceeds received for making further
investments in accordance with its investing policy.

 

Ed McDermott, CEO, commented: "I am pleased to be able to confirm to
shareholders that the sale of Leap to IMG Arena has been declared
unconditional and has concluded in line with the anticipated timelines. The
initial cash proceeds, and the balance paid on the 12-month anniversary of
Completion, provides us with liquidity at a time where we are seeing some very
promising investment opportunities. We strongly believe that our portfolio
has the potential to create short, medium- and long-term value creation.

 

"We wish Leap and IMG well in the future."

 

 

ENDS

 

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

 

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

 Lance de Jersey
 James Biddle /                       Beaumont Cornish Limited,   T: +44 (0) 207 628 3396

 Roland Cornish                       Nomad

 Isabella Pierre /                    Shard Capital Partners LLP  T: +44 (0)20 7186 9927

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

 Max Bennett                          Financial PR

 

Notes

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.

 

Leap is a developer of high-end virtual-sports, slots, and casino applications
serving hundreds of gaming brands and generating tens of thousands of
engagement points with end-users. Leap's attention to detail in its solutions
and services is manifested in the modular engagement terms it offers to its
operating partners and its ability to provide seamless experiences across
mobile, desktop and retail environments. Leap is licensed by the MGA and
certified for other jurisdictions worldwide,  including the United Kingdom,
Sweden, the Netherlands, Romania, South Africa and Greece.

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