Seed Innovations up 20% after maiden dividend
AIM-quoted Seed Innovations PLC has declared a maiden special dividend of 1p.
The investment company, which provides shareholders with exposure to early-stage health and medical cannabis companies, has used the benefit of its investment in Leap Gaming, announced on 7 December 2022. While the special dividend will be funded from existing cash reserves, the company remains funded to the tune of £4 million to continue to seek opportunities in a difficult market. IGTV caught up with Ed McDermott, the chief executive, to discuss the news and how far shares are under the net asset value.
(AI Video Summary)
Seed Innovations shares on an impressive rise
Seed Innovations PLC, an AIM-listed company focused on early-stage health, wellness, and medical cannabis businesses, saw its shares jump 20% after declaring a maiden dividend, stemming from the complete receipt of proceeds from the sale of an outlier asset, Leap Gaming. CEO Ed McDermott highlighted the company’s robust cash position, even post-dividend, and emphasised the strategic investments in high-growth potential sectors like biotech and life sciences.
Strong outlook ahead
Despite market volatility, Seed Innovations plans to leverage its cash reserves for future high-growth investments. The current market undervalues the company's net asset value (NAV), not fully recognising the worth of major assets, a common scenario in challenging markets. McDermott remains bullish on the future, driven by the quality of their portfolio companies and management teams.
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