SEED Seed Innovations Limited

RNS Reach - non-regulatory announcement

16 January 2025

SEED Innovations Limited

("SEED" or the "Company")

2025 New Year Statement

Driving shareholder value through strategic portfolio management

SEED Innovations Ltd, an AIM-listed investment firm providing access to high-growth, disruptive life sciences and technology ventures typically out of reach for everyday investors, is pleased to share a 2025 New Year Statement from its CEO, Ed McDermott.

"As we move into the new year, I reflect on a difficult 2024, which saw many challenges but also some strides forward including the delivery of positive results from SEED's largest portfolio companies and the second instalment of proceeds from the sale of Leap Gaming received in April 2024. This enabled us to reward our shareholders with a share buyback programme and an inaugural special dividend.

"We expect 2025 to be somewhat more dynamic as we continue to actively manage our portfolio, encompassing liquid  and longer term opportunities. To support this, we are currently conducting due diligence on several promising prospects across a range of sectors.

"Our short-term trading strategy will remain industry-agnostic, while our traditional venture strategy will continue prioritising seeking significant returns on larger investment sums. There continues to be a substantial capital deficit to meet the needs of growth companies globally, which has caused innovation to take a step back in recent years. However, I see the next 2-3 years as an opportune time to accelerate the growth of carefully selected ventures with the potential to scale into meaningful exits, ideally within 24 months of investment.

"Despite projections of low growth for the UK in the coming years, there are still sectors of considerable interest. For instance, in fintech, regulatory and compliance demands are driving significant expenditure from major institutions.

 "As mentioned, our portfolio companies continue to move forward despite the challenges of raising capital.

·    Clean Food Group: Raised c.£2.5m in March 2024 at SEED's carrying value of 16.5p per share, supporting our valuation.  Furthermore, it announced a partnership with THG Labs (part of The Hut Group) in October, hinting at further development of its strategy, which we hope may be followed by a further uplift in valuation in 2025.

·    Inveniam: Announced a significant partnership in December with, and investment from, a leading global AI investor, G42. Whilst details of the investment by G42 have not yet been made public, we are hopeful that this will translate into a modest uplift in the carrying value of Inveniam at the next valuation point.

·    Little Green Pharma: Continued its growth with a company record-breaking half year performance announced in November. In December, it announced plans to acquire HH (Australia) Pty Ltd, which operates a nationally focused medicinal cannabis distribution business across Australia aligning with its strategy of capitalising on current market conditions to acquire sustainable medicinal cannabis businesses at attractive valuations.

·    Juvenescence: Advanced its portfolio of companies focused on longevity, positioning it for success in this fast-growing healthcare landscape.

·    Avextra: Announced a €3.3m fundraise early in 2024 at above SEED's carrying value, supporting our carrying value.

"In addition, a new investment made in August in Pantheon Resources, as part of SEED's short-term trading strategy, resulted in a successful exit in November, yielding a 35% profit or approximately £87k.

"Regarding our market performance, our current market capitalisation is approximately £3.18m, while as of November, our cash reserves alone exceeded £3.8m, and our net asset value ('NAV') was estimated at £10.6m as of 30 September 2024. These figures clearly indicate that we are trading at a significant discount to our intrinsic value.

"With a robust cash reserve, coupled with our dynamic portfolio and promising investment pipeline, I am confident that 2025 will be a year of significant progress for SEED. I would like to extend my thanks to our team and shareholders for their unwavering support as we work towards unlocking SEED's full potential and aligning its stock valuation with the value of its assets.

"Wishing you all a prosperous and successful 2025." 

Ed McDermott, CEO

- Ends -

For further information please visit: www.seedinnovations.co or contact:

Notes 

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.