Last checked at 4 Oct 2022 07:30
Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments
04 October 2022
SEED Innovations Limited
("SEED" or the "Company")
Investee Company Update: Avextra raises c.€ 7.4 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 provide an update on its portfolio company Avextra ('Avextra') (previously Eurox Group), a German-based, European vertically integrated medical cannabis company, which has raised a total of approximately €7.4 million (c.£6.4 GBP million at today's exchange rate) from existing investors via a secured convertible loan note ('CLN').
Following this fundraise, SEED's holding in Avextra on a fully diluted basis totals approximately 7.48 per cent. SEED did not participate in this fundraise.
Highlights:
· c.€7.4 million in new capital raised by Avextra making the total raised in 2022 to date approx. €11.8 million
· 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)
· The fundraise will be used to support Avextra's launch in Germany, R&D activities including the start of clinical studies, as well as furthering the expansion of their Portuguese operations
· The further c.€7.4 million has been raised from existing shareholders, including institutional investor, Iberis Bluetech Fund, demonstrating their confidence in Avextra and its future
Ed McDermott, CEO of SEED, commented: "SEED is pleased to share the news of a significant €7.4 million fundraise by investee company Avextra, despite the widely reported poor market conditions for raising money. The large quantum of the fundraise, and the terms it has been raised on, is a testament to the confidence investors have in Avextra's future. Germany remains the largest European medical cannabis market and continues to show excellent growth in patient numbers and total market revenues.
"We continue to see strong progress from Avextra, in both operational breakthroughs, its vertically integrated production capabilities and its increased sales of its 'made in Germany' medical cannabis product range, and with further significant funding now secured, Avextra is very well capitalised for future growth."
***ENDS***
For further information on the Company please visit www.seedinnovations.co or contact:
Ed McDermott Lance de Jersey | SEED Innovations Ltd | E: info@seedinnovations.co
|
James Biddle Roland Cornish | Beaumont Cornish Limited, Nomad | T: (0)20 7628 3396
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Isabella Pierre Damon Heath | Shard Capital Partners LLP Broker | T: (0)20 7186 9927 |
Catherine Leftley Isabelle Morris Max Bennett | St Brides Partners Ltd, Financial PR | E: seed@stbridespartners.co.uk |
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.