Seed Innovations gets £2.4m balance from Leap Gaming sale

15th Apr 2024 10:06

(Sharecast News) - Health, wellness and medical cannabis investor Seed Innovations announced the receipt of £2.4m (€2.76m) from the final instalment of the sale proceeds of its portfolio company Fralison Monday, which operated as Leap Gaming.

The AIM-traded firm said the sale of Leap Gaming, completed last April, generated total proceeds of €5.8m forSeed, payable in two tranches.

It said the initial tranche of €3m was received upon closure of the deal, with the remaining balance disbursed on 12 April.

The board said the transaction significantly bolstered the company's financial position, contributing to a robust cash reserve exceeding £6m, surpassing the company's market capitalisation.

"With an additional £2.4m in cash in the bank, our financial position is exceptionally robust," said chief executive officer Ed McDermott.

"Despite ongoing liquidity challenges in junior stocks, the investment landscape continues to offer compelling opportunities."

As a result, McDermott said the company was committed to identifying "innovative investment opportunities" to benefit shareholders.

"Our primary objective is to enhance shareholder value, and we anticipate unveiling several strategic initiatives aimed at achieving this goal in the near future.

"We are confident that these initiatives will be well-received by our shareholders."

At 0847 BST, shares in Seed Innovations were up 6.83% at 2.19p.

Reporting by Josh White for Sharecast.com.