LONDON, UK: SEED Innovations Ltd, an AIM-listed investment company focused on early-stage health, wellness, and medical cannabis ventures, has successfully sold 2,900 share units in Avextra AG, a German medical cannabis company. The sale generated €2.9 million (£2.45 million) and marks a 62% return on SEED’s original investment.
SEED now holds a 3% stake in Avextra and plans to use its substantial cash position to explore new investment opportunities in fast-growing sectors.
CEO Ed McDermott said: “The opportunity arose for a partial exit of our Avextra holding, and the board agreed that generating another c.£2.45 million via a premium asset sale was the right decision. The Sale represents a 60% premium to our entry point which is pleasing, especially when prevailing market conditions are accounted for. We remain supportive shareholders of Avextra and appreciate the progress they continue to make along with their focus on meeting the needs of patients and healthcare professionals across Europe.
“As an agile fund that can adapt to the movements in the markets, SEED is looking to speed up the investment cycle and, where appropriate, seek full or partial exits within as close to a 24-month timeframe as possible. Current market conditions have created strong opportunities for investment companies with cash, and, with the Board’s broad network and access to investment opportunities, we intend to utilize our cash and cash receivables balance of some £7.1m to invest in fast-moving enterprises with excellent upside potential.”
Avextra CEO, Bernhard Babel’s Comment: “SEED joined us as an investor very early on and the initial investment came at an important time for Avextra to enable its growth and add to the confidence of other institutional investors who have, like SEED, supported the company across a number of raises. SEED’s representative on the supervisory board, Alfredo Pascual, has helped us with his experience and deep insights in the sector, and we would like to thank him and SEED for their valuable support. We are pleased SEED remains an investor and we look forward to providing further positive Avextra updates in the coming weeks.”
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