Seed Innov Regulatory News (SEED)

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

3 August 2021

SEED Innovations Limited ("SEED" or the "Company")

Further Investment in Yooma Wellness ahead of its listing on AQSE

SEED Innovations Limited, the AIM quoted company investing in fast growing and industry leading businesses with a focus on investing within the medical cannabis, health and wellness space, is pleased to advise that it has participated in the latest financing round of US$9.7 million by its portfolio company, Yooma Wellness Inc. ('Yooma') as announced by Seed on 27 July 2021. Yooma is a vertically-integrated global leader in the manufacturing, marketing, distribution, and sale of wellness products including hemp seed oil and hemp-derived cannabinoid ingredients.

SEED has invested a further £220,000 (CDN$378,400, c.US$302,000) at a price of CDN$0.90 per common share (the 'Investment'). As announced on 26 July 2021, Yooma has submitted an application for the admission of its common shares to trading on the AQSE Growth Market ("AQSE"). The financing is expected to be completed and trading to commence on AQSE on 10 August 2021, at which time Yooma's shares, which are already listed on the Canadian Securities Exchange, will be dual-listed on the AQSE.

 The Investment is conditional upon admission to trading on the AQSE.

Highlights

· Investment further adds to SEED's exposure to the wellness industry

· Yooma recently announced it had submitted an application for admission to trading on AQSE; trading is expected to commence on 10 August 2021

· Yooma is forecasting US$17.1 million revenue in 2021 and an annualised run-rate of US$32 million by end of 2021*

· Yooma has a strong pipeline of possible acquisition targets and the conditional fundraise will contribute to accelerating Yooma's growth*

* Source:https://webfiles.thecse.com/sedar_filings/00033704/2106150622018795.pdfEd McDermott, CEO of FastForward, commented : "We are delighted to support Yooma with this further investment. Yooma continues to go from strength to strength and with the funds now in place which will support their pipeline of potential acquisition targets, I am excited about Yooma's growth prospects.

"With recent news of their intended dual listing on the AQSE Growth Market we are confident in Yooma's plans to build a global wellness company. This additional investment will also add to SEED's expanding exposure to listed cannabis-focused investments and the wellness market. I look forward to providing further updates as it continues its journey."

Further Information

The Company is subscribing for 420,444 common shares in Yooma at a price of CDN$0.90 per common share resulting in a total investment of CDN$378,400 (£220,000). The Investment is conditional upon admission to trading on the AQSE which is expected on 10 August 2021.

The Company currently has an equity interest in Yooma of 5.1% and expects to have a shareholding on admission of 4,427,609 common shares representing c. 5% of the issued share capital of Yooma on admission. As announced by Yooma on 26 July, Yooma granted a single strategic investor an option to acquire shares to a value of £5 million (gross) exercisable on or before 17 September 2021 (the 'Option'). Should the Option be exercised, SEED's shareholding will reduce to c. 4.5%.

In addition, SEED will receive one warrant for every two common shares subscribed, exercisable at a price of CDN$1.35 (£0.7849) per common share.

Since this Investment is considered a Substantial Transaction under AIM Rule 12, this announcement requires certain disclosures under Schedule Four. Yooma's interim statements for the 3 months to 31 March 2021 show revenue of US$603,680, a net loss of US$2,427,866 and shareholders' equity of US$39 million.

About Yooma Wellness Inc.

A Toronto-based vertically-integrated global wellness platform that develops and markets a portfolio of wellness brands. Yooma's mission is to build a global leader in the marketing, distribution, and sale of wellness products including hemp seed oil and hemp-derived and cannabinoid (CBD) ingredients. The company leverages strategically curated sales channels and ecommerce networks to deliver a diverse mix of wellness products through subsidiaries in China, Japan, and the United States. Yooma has assembled an international team of multicultural industry professionals with extensive experience in digital marketing, ecommerce and social media in the EU, North America, and the pan-Asian region, with particular depth in the Chinese ecommerce market. For more information about Yooma Wellness Inc go to: www.yooma.ca.

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

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