SEED Innovations (SEED ) has invested a further €450,000 in Fralis LLC, otherwise known as Leap Gaming, an Israeli developer of 3D gaming applications which operates on a global scale.
The London-listed investment firm, which focuses on investing in the medical cannabis, health and wellness space, said the €0.45m investment was funded from existing cash resources.
Today’s investment is by way of an extension to the existing €1m 1% Convertible Loan Note (‘CLN’) as part of a funding round by Leap to raise up to a further €1.2million, SEED noted.
The Company holds 47.06% of the total equity of Leap Gaming, on an un-diluted basis.
Leap’s existing shareholder, IMG Arena, a subsidiary of Endeavour Group, has also invested further into the business. Seed Innovations highlighted the attractive conversion terms, with a conversion ceiling below SEEDs 31 March 2021 valuation of 100% of Leap of €23.95m.
The group said progress is being made at Leap with forecast metrics for year to 31 December 2021 highlighting turnover to be up by 40% compared to December 2020; transactions to have increased by 60% on prior year; while daily average users have also increased by 60%.
Shares in Seed Innovations, formerly known as Fast Forward Innovations, were trading 0.78% lower during late morning trading at 6.35p following this morning’s announcement.
It added that minimum fees from operators as at September 2021 were double that of 2020.
Ed McDermott, CEO of SEED, commented: “This investment reflects our ongoing support of Leap Gaming and their team as they continue to challenge the gaming industry worldwide”
He said funding will facilitate Leaf’s development “towards a possible liquidity event with all options, including M&A activity and a near term public market offering, being contemplated.”
Addressing shareholders, McDermott added: “Although not a sector of core focus for SEED, this long-term investment that we have supported for some time is an important contributor to our net asset value, and with the growth Leap has seen and is forecasting to year end, we anticipate positive news flow and corporate development into 2022.”
SEED Innovations is an AIM quoted investment firm focused primarily on disruptive high growth life sciences and technology businesses particularly in the medical cannabis arena.
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