REG - Seed Innovations Ltd - Portfolio Update: Northern Leaf CLN conversion

Seed InnovationsAnnouncement

24/04/2023 07:15

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RNS Number : 1126X  Seed Innovations Limited  24 April 2023

24 April 2023

 

SEED Innovations Limited

("SEED" or the "Company")

Portfolio Company Update: Northern Leaf Limited

SEED Secures 60% Uplift on Original Investment following Conversion of Loan
Notes

 

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, announces the conversion of £600,000 Convertible Loan Notes
("CLNs") in Northern Leaf Limited ("Northern Leaf"), a Jersey based medical
cannabis cultivator, following its successful £3 million pre-IPO fundraise,
with a future IPO currently targeted for this year.

SEED originally invested in Northern Leaf via a 2-year £600,000 Convertible
Loan Note ("CLN") as part of a c.£14M raise by Northern Leaf (as announced 1
April 2021).

Following a successful equity raise of c.£3 million, this CLN (principle and
accrued interest of approximately 20%) has converted in accordance with the
terms of the CLN into 1,236,331 preference shares in Northern Leaf,
representing 2.2% of the enlarged equity of Northern Leaf.

At the price of the recent raise, SEEDs holding is valued at £960,000, a 60%
uplift (1.6X) including accrued interest compared to the original investment.
 

Ed McDermott, CEO, commented:

"In 2021, we saw the opportunity presented by Northern Leaf, which was the
first company to be awarded a UK licence to grow medical cannabis in 22 years,
and participated in what was an oversubscribed round.   Two years on and
with EU-GMP and GACP accreditations expected soon, Northern Leaf is poised to
make their first sales of product this year and has shared plans to IPO.

"This represents an exciting time in the development of this young medicinal
cannabis cultivation business, which we were delighted to support in its early
stages. SEED's strategy is to identify early investor opportunities in
companies like Northern Leaf, which have the potential to deliver real growth
to our shareholders. We are absolutely delighted for Northern Leaf and its
management team and look forward to following 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

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

Notes to Editors

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 Northern Leaf Limited

Northern Leaf is a medical cannabis cultivator based in Jersey that, in
December 2020, was granted the first UK commercial high THC medical cannabis
license since UK based GW Pharmaceuticals (NASDAQ:GWPH) in 1998. The Company
is leading the development of a new industry for the British Isles, creating
centres of excellence, using state-of-the-art tracking systems and robust
policies and procedures to ensure the highest levels of quality from seed to
sale.

With a secure operational facility already built in Jersey where the
favourable climate and sunshine hours contribute to a comparably lower
cultivation cost, Northern Leaf will grow commercial quantities of medical
cannabis for the rapidly growing European market, including the key markets of
the UK, Germany, and Israel. For more information about Northern Leaf, please
visit https://www.northern-leaf.com/.

 

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