13th Feb 2023 18:06
(Alliance News) - Seed Innovations Ltd on Monday said that its investee Yooma Wellness Inc has become an immaterial holding.
The AIM-quoted firm which invests in fast-growing and industry-leading businesses with a focus on the medical cannabis, health, and wellness space, noted that as at 30 September 2022, the net asset value of Seed carried a valuation of just GBP43,000 for Yooma, 0.26% of its portfolio NAV.
Seed was responding to an update from Yooma which addressed its ongoing restructuring, liquidity constraints, and its lack of working capital.
Options for Yooma include a possible fund-raising, sale of assets, and an orderly wind down or insolvency proceedings for some or all members of the group. It also reported an exit from Japan which leaves its only material operating business lines in Europe.
Chief Executive, of Seed, Ed McDermott, commented "Whilst we are clearly disappointed with this news from Yooma, over time this has become an immaterial holding for the company, being 0.26% of NAV, and therefore its impact is minimal."
Shares in Seed Innovations closed 6.4% lower at 2.20 pence in London on Monday.
By Jeremy Cutler, Alliance News reporter.
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