Last checked at 2 Nov 2022 13:20
Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments
2 November 2022
SEED Innovations Limited
("SEED" or the "Company")
Investee Company Update: Little Green Pharma Ltd Fundraise
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 note an announcement released on the ASX by its portfolio company, Little Green Pharma Ltd ("LGP").
Little Green Pharma Ltd has announced that it has secured firm commitments for a AUD $4 million placement (the "Placement") from new and existing institutional and sophisticated investors as well as commitments for a further AUD $200,000 from LGP's Board and Executive. In addition, LGP has launched a Share Purchase Plan offer for eligible existing shareholders.
Highlights:
· LGP has received firm commitments for a AUD 4 million placement and launched a AUD 2 million Share Purchase Plan ("SPP") for eligible shareholders
· Placement demonstrates strong support from new and existing institutional and sophisticated investors
· Placement and SPP offer at AUD 0.20 per ordinary share with free-attaching 1 for 1 option exercisable at AUD 0.25
· LGP will use the funds for operational expenses and accelerating European and Australian sales
· LGP is now wholly focused on achieving break-even and ultimately delivering profitable sales, including by delivering into new and existing European supply agreements and driving increased sales in Australia
SEED have not participated in the Placement. The Company owns 7,324,796 ordinary shares in LGP representing 3.04% of LGP's issued share capital prior to the Placement.
Ed McDermott, CEO at SEED, commented:
"Whilst we are disappointed to see a discounted capital raise at this time, we still feel that LGP is a best-in-class investment in the medical cannabis industry and we are pleased to see it recently reporting ever growing patient numbers, sales and new market entries. With further funds now in place to support this growth, LGP can focus on its aim to achieve break-even while continuing on expanding its Australian and European sales channels."
The announcement including the material terms of the Placement can be viewed in full on LGP's website via the following link: https://investor.littlegreenpharma.com/site/investor-centre/asx-announcements
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For further information on the Company please visit: www.seedinnovations.com or contact:
Ed McDermott Lance de Jersey | SEED Innovations Ltd | E: info@seedinnovations.co
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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: info@stbridespartners.co.uk |
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 Little Green Pharma
Little Green Pharma is a global, vertically integrated and geographically diverse medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution. The Company has two global production sites for the manufacture of its own-branded and white-label ranges of GMP-grade medicinal cannabis products, being a 21,500m2 cultivation and 4,000m2 GMP manufacturing facility capable of producing over 20 tonnes of medicinal cannabis biomass per annum located in Denmark (EU) and an indoor cultivation and manufacturing facility located in Western Australia capable of producing ~3 tonnes of medicinal cannabis biomass per annum. Little Green Pharma products comply with all required Danish Medicines Agency and Therapeutic Goods Administration regulations and testing requirements. With a growing range of products containing differing ratios of active ingredients, Little Green Pharma supplies medical-grade cannabis products to Australian, European and overseas markets. The Company has a strong focus on patient access in the emerging global medicinal cannabis market and is actively engaged in promoting education and outreach programs, as well as participating in clinical investigations and research projects to develop innovative new delivery systems. For more information about Little Green Pharma go to: www.littlegreenpharma.com