SEED Innovations Ltd (AIM:SEED, OTC:FFRIF) said it invested in a UK-based food tech company, of which it now holds a 5.38% stake.
The investment firm focused on the medical cannabis and wellness space said it invested a total of £171,000 in Clean Food Group, which aims to bring sustainable foods to market.
An initial investment of £46,000 for 4.6mln shares was made in March 2022 during a seed round, while the remaining £125,000 for 1.25mln shares was invested in the ‘Friends and Family' funding round.
According to a statement, SEED now holds 5.85mln shares, representing a 5.38% stake in Clean Food, which was co-founded by SEED’s chief executive Ed McDermott in 2021, with an implied value of £585,000.
The investment is in line with AIM-listed SEED’s “strategy of investing in the life science and biotech sectors” and brings further diversification to its portfolio.
Clean Food’s main goal is to bring a sustainable alternative to palm oil, a market which is expected to reach US$65.5bn by 2027.
Currently, Clean Food owns the intellectual property for a technology platform to produce a palm oil alternative and has a two-year deal with the University of Bath to scale production and bring it to the market.
"With this £1.65mln funding in place, CFG are well capitalised to complete the next stage of corporate development to bring their palm oil alternative,” said Lance de Jersey, chief operating officer and finance director of SEED.