SEED Innovations Ltd (AIM:SEED, OTC:FFRIF) gave investors two separate updates on its investee companies, Avextra and Little Green Pharma respectively.
Avextra has raised €7.4mln of new funds from existing investors, via a secured convertible loan note. Seed did not participate in the funding exercise and subsequently its interest in Avextra stands at around 7.48%.
The injection of funds is expected to be used for the launch of company into Germany and an expansion of its Portuguese operations.
"SEED is pleased to share the news of a significant €7.4mln fundraise by investee company Avextra, despite the widely reported poor market conditions for raising money,” said SEED chief executive Ed McDermott.
“The large quantum of the fundraise, and the terms it has been raised on, is a testament to the confidence investors have in Avextra's future.”
SEED’s 3% owned Little Green Pharma meanwhile announced it has partnered with Cannamedical in Germany for the supply of bulk medicinal cannabis from Denmark, with a potential value of A$4.5mln over two years.
It’s the company’s fourth medicinal cannabis supply agreement this year with key wholesalers and distributors in Germany, and, extends the company’s lead as ‘the pre-eminent non-Canadian global medicinal cannabis group supplying flower into Germany and the EU’, the company said.
“LGP's agreement with Cannamedical represents a great achievement for the company,” said Alfredo Pascual, SEED vice president of investment analysis.
“With first export to Cannamedical expected within H1 2023, I am looking forward to updating the market on LGP's progress".