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Investments and investor services

SEED Innovations says value of stake in portfolio company jumps after premium fundraise

SEED holds just under 9% of the shares in the German medical cannabis company

SEED Innovations Ltd (AIM:SEED, OTC:FFRIF) said portfolio company Eurox Group raised €4.4mln from new and existing investors at a 62% premium to a July 2021 fundraise.

As a result, the carrying value of SEED's approximate 9% holding in the medical cannabis group increased to €5mln from €3mln, a statement said.

Portuguese private equity firm Iberis Capital provided €2mln, with the rest of the funds coming from existing shareholders, including SEED.

“EUROX have made considerable progress since our initial investment during last year, generating sales by broadening its medical cannabis range and crucially its distribution channels while remaining focussed on innovation and product development,” said Ed McDermott, chief executive of SEED.

“The support seen for this fundraise, completed at a 62 % premium to our initial investment, is testament to the brand and its growth potential and I am particularly encouraged to see a new institutional cornerstone the Fundraise,” McDermott added.

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