corporations
SEED Innovations sells stake in Avextra for €2.9 million
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SEED Innovations announced the sale of 2.900 shares in Avextra AG, around 56,4% of its stake in the company formerly called Eurox Group, for a gross amount of 2.9 million euros. SEED continues to hold 2.242 shares in Avextra, representing approximately 3% of Avextra on a fully diluted basis.
This announcement represents a significant strategic step for SEED Innovations as it continues to adapt its investment portfolio and create value for its shareholders. The sale of the stake in Avextra AG will strengthen the company's financial position and open doors to new investment opportunities in a constantly evolving market in the field of health, well-being and medical cannabis.
Main key points of the transaction:
· The sale resulted in a gross amount of €2.9 million, representing a return of 62% (1,6x) on SEED's original investment in 2021 and 2022.
· SEED continues to be a supporting shareholder, holding 2.242 units, equivalent to around 3% of Avextra, on a fully diluted basis.
· SEED's total cash position after the sale will be approximately €4.6 million, with additional receivables from the sale of Leap Gaming worth approximately €2.5 million.
· The total cash and receivables position of €7.1 million is significantly higher (around 38,9%) than SEED's current market capitalization, which is around €5.11 million (based on the close of September 8, 2023 ).
· The latest net asset value (NAV) published by SEED included Avextra at €4.436.000, based on a price per share of €980.
– The sale at €1.000 per share represents a premium of 2% over the price in euros per share.
– After the sale, SEED's remaining stake in Avextra could be valued at €2.240.000 (around €1.9 million) based on this new price.
· With an increasing level of cash on hand and robust potential business opportunities, SEED remains confident that the current environment will offer superior investment opportunities and, in turn, create lasting value for investors.
· SEED remains committed to its investment policy of providing exposure to disruptive growth opportunities, diversifying into the life sciences and biotechnology sectors, and leveraging its resources and expertise to achieve maximum returns while mitigating risks.
· In addition to long-term investments, management may consider making short-term investments, when there is a significant level of liquidity and in accordance with SEED's Investment Policy, as indicated in the Company's Final Results for 2023.
Portuguese fund Iberis Capital invests 2 million in Eurox Group
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[Disclaimer: Please note that this text was originally written in Portuguese and is translated into English and other languages using an automatic translator. Some words may differ from the original and typos or errors may occur in other languages.]____________________________________________________________________________________________________
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I am one of the directors of CannaReporter, which I founded together with Laura Ramos. I am from the unique Island of Madeira, where I currently reside. While I was in Lisbon at FCUL studying Physical Engineering, I became involved in the national hemp and cannabis scene and participated in several associations, some of which I am still a member of. I follow the global industry and especially legislative advances regarding the different uses of cannabis.
I can be contacted by email at joao.costa@cannareporter.eu
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