Seed Innovations Limited Portfolio Update: Northern Leaf CLN conversion (1126X)
24 April 2023 - 4:00PM
UK Regulatory
TIDMSEED
RNS Number : 1126X
Seed Innovations Limited
24 April 2023
24 April 2023
SEED Innovations Limited
("SEED" or the "Company")
Portfolio Company Update: Northern Leaf Limited
SEED Secures 60% Uplift on Original Investment following
Conversion of Loan Notes
SEED Innovations Ltd, the AIM-quoted Company investing in
fast-growing and industry-leading businesses with a focus on the
medical cannabis, health, and wellness space, announces the
conversion of GBP600,000 Convertible Loan Notes ("CLNs") in
Northern Leaf Limited ("Northern Leaf"), a Jersey based medical
cannabis cultivator, following its successful GBP3 million pre-IPO
fundraise, with a future IPO currently targeted for this year.
SEED originally invested in Northern Leaf via a 2-year
GBP600,000 Convertible Loan Note ("CLN") as part of a c.GBP14M
raise by Northern Leaf (as announced 1 April 2021).
Following a successful equity raise of c.GBP3 million, this CLN
(principle and accrued interest of approximately 20%) has converted
in accordance with the terms of the CLN into 1,236,331 preference
shares in Northern Leaf, representing 2.2% of the enlarged equity
of Northern Leaf.
At the price of the recent raise, SEEDs holding is valued at
GBP960,000, a 60% uplift (1.6X) including accrued interest compared
to the original investment.
Ed McDermott, CEO, commented :
"In 2021, we saw the opportunity presented by Northern Leaf,
which was the first company to be awarded a UK licence to grow
medical cannabis in 22 years, and participated in what was an
oversubscribed round. Two years on and with EU-GMP and GACP
accreditations expected soon, Northern Leaf is poised to make their
first sales of product this year and has shared plans to IPO.
"This represents an exciting time in the development of this
young medicinal cannabis cultivation business, which we were
delighted to support in its early stages. SEED's strategy is to
identify early investor opportunities in companies like Northern
Leaf, which have the potential to deliver real growth to our
shareholders. We are absolutely delighted for Northern Leaf and its
management team and look forward to following their progress."
- Ends -
For further information on the Company please visit: www.seedinnovations.com or contact:
Ed McDermott SEED Innovations E: info@seedinnovations.co
Lance de Jersey Ltd
James Biddle Beaumont Cornish T: (0)20 7628 3396
Roland Cornish Limited,
Nomad
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Isabella Pierre Shard Capital Partners T: (0)20 7186 9927
Damon Heath LLP
Broker
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Catherine Leftley St Brides Partners E: info@stbridespartners.co.uk
Isabelle Morris Ltd,
Max Bennett Financial PR
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This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
Notes to Editors
Seed Innovations Ltd
SEED Innovations is an AIM quoted investment company focused
primarily on disruptive high growth life sciences and technology
businesses particularly within the medical cannabis arena. The
Company's strategy is to identify early-stage opportunities that
have an upcoming investment catalyst and grow its portfolio in
terms of value whilst limiting the number of investee companies to
a level where relevant time can be devoted to each.
About Northern Leaf Limited
Northern Leaf is a medical cannabis cultivator based in Jersey
that, in December 2020, was granted the first UK commercial high
THC medical cannabis license since UK based GW Pharmaceuticals
(NASDAQ:GWPH) in 1998. The Company is leading the development of a
new industry for the British Isles, creating centres of excellence,
using state-of-the-art tracking systems and robust policies and
procedures to ensure the highest levels of quality from seed to
sale.
With a secure operational facility already built in Jersey where
the favourable climate and sunshine hours contribute to a
comparably lower cultivation cost, Northern Leaf will grow
commercial quantities of medical cannabis for the rapidly growing
European market, including the key markets of the UK, Germany, and
Israel. For more information about Northern Leaf, please visit
https://www.northern-leaf.com/.
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