4th Oct 2022 16:50
(Alliance News) - Seed Innovations Ltd on Tuesday said that its wholly-owned subsidiary, Little Green Pharma Ltd, has signed a deal potentially worth more than EUR3.0 million over two years to supply bulk medicinal cannabis from Denmark to Germany.
The medical cannabis, health and wellness company said that Little Green Pharma had partnered with Cannamedical Pharma GmbH, an independent German medical cannabis wholesaler.
It argued the agreement validated LGP's key strategy of "developing bespoke, high-value white label strains for export".
Seed owns a 3% stake in Little Green Pharma's share capital.
Seed also announced that its portfolio company Avextra, a German-based medical cannabis business, has raised a total of EUR7.4 million from existing investors via a secured convertible loan note.
This makes the total raised by Avextra in 2022 approximately EUR11.8 million. The loan is convertible at a 20% discount to a future fundraise, or at maturity on January 31, 2024 at the same valuation as the previous fundraise.
The inferred value in the carrying value of Seed's holding in Avextra remains at EUR5.0 million.
Seed said the fundraise will be used to support Avextra's launch in Germany.
Chief Executive Officer Ed McDermott added: "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 shares were trading 2.0% higher at 2.50 pence each in London on Tuesday afternoon.
By Holly Beveridge; [email protected]
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