SEED Innovations Ltd (AIM:SEED) said it will receive preferred shares in Inveniam Capital Partners after it completed the acquisition of Factom Inc, one of SEED’s portfolio companies.
Factom’s value in SEED’s portfolio was written down to zero last year.
SEED said the value of the Inveniam preferred shares it will receive is initially expected to be around £250,000, but it will price the investment in its accounts “in accordance with the price at which the same class of Inveniam preferred shares has been sold in concurrent private sales”.
The medical cannabis and wellness investor said the terms of the acquisition will mean it and other Factom preferred shareholders may also receive further consideration if revenue is generated from US government contracts held by Factom.
Ed McDermott, chief executive of SEED, said: “Whilst very disappointing to see the final demise of Factom Inc, which has been held at nil value since March 2020, the agreement reached with Inveniam Capital Partners Inc brings what has been a very difficult 18 months for Factom to a close and presents an opportunity for SEED to possibly recoup some of that investment via the preference share holding in Inveniam. We wish Inveniam every success and will monitor their progress and communicate the development of their business to our own shareholders as conditions allow.”
Factom is a blockchain innovations company, a legacy of SEED's former investment strategy. Inveniam is a New York-based fintech company that uses blockchain technology to provide real-time pricing to facilitate liquidity of private market assets.