Avextra AG Successfully Raises EUR 17 million

RNS Number : 0918T

Seed Innovations Limited

15 March 2023

 

15 March 2023

SEED Innovations Limited

("SEED" or the "Company")

Investee Company Update: Avextra AG  Successfully Raises €17 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 note an announcement released by its portfolio company, Avextra AG ('Avextra'), a German-based, European vertically integrated medical cannabis company. Avextra has raised a total of approximately €17 million* (c. £15M GBP million at today's exchange rate) from existing investors, the full management team, and new additional European investors via a convertible loan note ('CLN').

Following this fundraise, SEED's holding in Avextra (formerly Eurox Group) on a fully diluted basis totals approximately 6.6 per cent. SEED did not participate in this fundraise.

* €17 million total includes the previously announced €7.4M from the first close of this round (RNS of 4 October 2022).

Highlights:

· c.€17 million in new capital raised by Avextra, making the total raised in aggregate since Seed's initial investment approx. €21.4 million (RNS of 5 July 2021) (c. £18.8M GBP million at today's exchange rate)

· Investors' infusion of c.€17 million in Avextra endorses its R&D-focused, pan-European strategy and execution ability, reflecting high confidence. It establishes Avextra as one of the limited R&D and IP-focused players in the global cannabis market.

· 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) as last reported as at 30 September 2022.

· The fundraise will be used to expand sales and distribution channels of Avextra's product portfolio into new European markets, expedite Cannabis-based medication clinical trials, advance its R&D activities as well as further its expansion into the German market.

The announcement in full can be accessed from the following link : http://bit.ly/42bYXRZ

 Ed McDermott, CEO of SEED, commented:"SEED is delighted to announce the latest milestone achieved by its investee company, Avextra, in successfully securing a significant €17 million capital raise in its latest funding round.

"Despite a soft market for raising funds, the substantial amount raised is a testament to investors' confidence in Avextra's growth and prospective future.

"Avextra is making remarkable headway with its operational advancements, vertically integrated production capabilities, and amplified R&D undertakings. The company is now well-financed for its future growth endeavours in the European medical-cannabis markets. The significant funding secured positions Avextra to become one of the scarce R&D and IP-driven players in the worldwide cannabis market and we look forward to following and supporting their progress."

- Ends -

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

Ed McDermott Lance de Jersey	SEED Innovations Ltd	E: [e-mail]
James Biddle Roland Cornish	Beaumont Cornish Limited, Nomad	T: (0)20 7628 3396
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: [e-mail]

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.

 

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