SEED Innovations Ltd (AIM:SEED, OTC:FFRIF) said it will soon be in a strong cash position to make more investments as it announced its interim results for the six months ended 30 September 2022, a period in which the company continued to develop its portfolio.
The investment company said in a statement after today’s market close it is well-positioned to benefit from the growth of the medical cannabis industry.
In the half, SEED Innovations disposed of its legacy holding in Leap Gaming to IMG Arena US, generating around €5.9mln in cash (to be paid over a two-year period)
The company also noted that it continued to invest in disruptive growth opportunities that would normally be inaccessible to private investors, including a recent investment in Clean Food Group.
Net asset value at 30 September was £16.7mln compared to £20.5mln at the end of March, equal to net assets of 7.84p per share and 9.62p respectively.
Chairman Ian Burns struck a confident tone on the outlook, saying: "Looking to the months ahead, I firmly believe that SEED is now in a position to expand and balance the liquidity of our portfolio.
"Bear market conditions often provide opportunities for nimble companies to make acquisitions at prices which offer excellent long-term value.
"Despite the macroeconomic challenges, we continue to work to increase shareholder value by investing in disruptive technologies, particularly in the life sciences, biotech, health, and wellness industries (including cannabis) where we see value.
"I do not believe that the current share price reflects the true value of the company, it remains, in my opinion, significantly undervalued by the market.
"We believe that taking a 5% stake in Clean Food Group at the founders and seed round levels demonstrates the boards commitment to making sure that our current and future investors are getting the earliest stage investment exposure possible in ventures they would be unlikely to be presented with were it not for a vehicle like SEED.
"This is one of the key reasons for SEED's very existence; to provide all investors with opportunities that are usually reserved for very high net worth investors only.
"Upon completion of the sale of Leap, SEED will be in a strong cash position to make more such investments."