(Alliance News) - Seed Innovations Ltd on Monday said it sold most of its interest in Avextra AG, formerly known as Eurox Group, for around EUR2.9 million.

Shares in Seeds Innovations were up 8.8% to 2.61 pence each in London on Monday morning.

The AIM-listed investment firm focusing on early-stage health, wellness and medical cannabis companies said it sold a 56% interest in Berlin-based medical cannabis firm Avextra, at a price representing a 62% return on Seed Innovations' original investment in 2021 and 2022.

Following the sale, Seed Innovations still holds around 3% of Avextra shares.

Seed Innovations' total cash position will be around GBP4.6 million following the sale, with further cash receivables due from the GBP2.5 million sale of Leap Gaming. Total cash and receivable position stands at GBP7.1 million, which it said is "markedly", or 39%, higher than its market capitalisation of GBP5.1 million on Friday closing last week.

"Seed joined us as an investor very early on and the initial investment came at an important time for Avextra to enable its growth and add to the confidence of other institutional investors who have, like Seed, supported the company across a number of raises," said Avextra Chief Executive Officer Bernhard Babel.

"Seed's representative on the supervisory board, Alfredo Pascual, has helped us with his experience and deep insights in the sector and we would like to thank him and Seed for their valuable support. We are pleased Seed remains an investor and we look forward to providing further positive Avextra updates in the coming weeks."

Seed Innovations CEO Ed McDermott added: "As an agile fund that can adapt to the movements in the markets, Seed is looking to speed up the investment cycle and, where appropriate, seek full or partial exits within as close to a 24-month timeframe as possible.

"Current market conditions have created strong opportunities for investment companies with cash and, with the board's broad network and access to investment opportunities, we intend to utilise our cash and cash receivables balance of some GBP7.1 million to invest in fast moving enterprises with excellent upside potential."

Seed Innovations added it intends for Investment Research Director Alfredo Pascual to step down from his role on the Avextra board "in the near future".

Pascual was appointed as an executive director of Seed Innovations at the beginning of the month.

By Greg Rosenvinge, Alliance News reporter

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