Seed Innovations Limited Investee Company Updates (8036X)
22 Diciembre 2023 - 5:10AM
UK Regulatory
TIDMSEED
RNS Number : 8036X
Seed Innovations Limited
22 December 2023
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.
22 December 2023
SEED Innovations Limited
("SEED" or the "Company")
Investee Company Updates
SEED Innovations Ltd, the AIM-quoted company investment company
providing shareholders with exposure to early-stage health,
wellness and medical cannabis companies, to which, in normal
circumstances, they have limited access to, is disappointed to note
an update from portfolio company Northern Leaf plc ("Northern
Leaf"), a Jersey based medical cannabis producer.
The Company also provides an update on Yooma Wellness Inc.
("Yooma").
Northern Leaf
By way of background, in April 2021 SEED invested a total of
GBP600,000 via a convertible loan note in Northern Leaf as part of
a pre-IPO funding round on the understanding that an IPO was
achievable in the near-term. In April 2023, as part of a GBP3
million equity raise by Northern Leaf, this was converted into
1,236,331 preference shares, representing approximately 2.22% of
Northern Leaf.
On 8 September 2023, SEED announced that Northern Leaf had
raised a further at least GBP1 million of pre-IPO money for working
capital purposes as it continued to work towards an intended
IPO.
Unfortunately, Northern Leaf failed to successfully IPO the
company during 2021/22 as intended, and poor public market
conditions in 2023 have further worked against Northern Leaf's
ambitions to complete an IPO thus far.
As a result, in the Company's interim results to 30 September
2023 announced on 22 November 2023, SEED subsequently reduced the
carrying value of Northern Leaf by a little over half to GBP443,000
to reflect either the risk of an IPO at a lower price or indeed of
a listing not progressing and the resultant pressures of raising
further private funding as a result of poor public market
conditions.
The Company has since been informed that Northern Leaf has
completed an aggressive rights issue raising at a post-money
valuation of GBP2.33M.
SEED did not participate in either the September or this latest
round and following the transactions is advised it will be diluted
to a 0.55% holding in Northern Leaf.
The Company has further reduced the carrying value of Northern
Leaf to c.GBP13,000 to reflect the valuation inferred by this
latest raise.
Commenting, Ed McDermott, CEO of SEED said:
"SEED invested in Northern Leaf in 2021 based on its promises of
an imminent IPO. As investors ourselves, we understand as well as
anyone how fundraising challenges and limited liquidity across the
UK market have exerted significant pressure on companies attempting
to come to market in the recent period. That said, we are extremely
disappointed in Northern Leaf's founding management and their
advisors in not taking advantage of what were clear opportunities
during 2021 and early 2022 for a liquidity event. We are reviewing
all our options, including seeking legal advice as appropriate
."
Yooma Wellness Inc.
As anticipated, the Company has noted a filing by Yooma
confirming that it has filed an assignment in bankruptcy pursuant
to the Bankruptcy and Insolvency Act (Canada). As announced in the
Company's interim results to 30 September 2023 announced on 22
November 2023, Yooma was already written down to zero.
- Ends -
For further information on the Company please visit:
www.seedinnovations.co 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
Ana Ribeiro Financial PR
Isabelle Morris
-------------------------- ------------------------------
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDBGBDDCUDDGXD
(END) Dow Jones Newswires
December 22, 2023 06:10 ET (11:10 GMT)
Seed Innovations (LSE:SEED)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Seed Innovations (LSE:SEED)
Gráfica de Acción Histórica
De May 2023 a May 2024