Seed Innovations Limited Portfolio Update: Northern Leaf CLN conversion (1126X)

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: [e-mail] 
  Lance de Jersey     Ltd 
 James Biddle        Beaumont Cornish         T: (0)20 7628 3396 
  Roland Cornish      Limited, 
                      Nomad 
                    -----------------------  ------------------------------- 
 Isabella Pierre     Shard Capital Partners   T: (0)20 7186 9927 
  Damon Heath         LLP 
                      Broker 
                    -----------------------  ------------------------------- 
 Catherine Leftley   St Brides Partners       E: [e-mail] 
  Isabelle Morris     Ltd, 
  Max Bennett         Financial PR 
                    -----------------------  ------------------------------- 
 

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/.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

PFUZZGZDKMKGFZM

(END) Dow Jones Newswires

April 24, 2023 02:00 ET (06:00 GMT)