Wednesday, December 6th 2023

Seed Innovations Ltd

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The handbrake on SEED Innovation’s stock is released as ‘gifted’ stock seller clears


“…I’ve spoken to all our large shareholders and I’m pleased to report that they are happy shareholders…”


There’s been a persistent seller of SEED Innovation’s stock and the culprit has been identified.   It is less important that the seller is the former chairman’s mum and more important that the sale of the 8.36% of the company’s shares she was gifted is now at an end.

Chief executive Ed McDermott understands Rhonda Abony’s decision particularly as she didn’t particularly understand the business and preferred the cash instead, unlike the other large shareholders which include American businessman Peter Saladino and UK entrepreneur Jim Mellon.

“I’ve spoken to all our large shareholders,” says McDermott, “and I’m pleased to report that they are happy shareholders.  They like the direction the fund is going. I’m pretty happy that those guys aren’t going anywhere anytime soon, and I don’t expect there to be any significant drag on the stock from large investors.”

McDermott talks fast and gets frustrated with drag of any sort on his portfolio.  The recent sale of poor performing portfolio constituent blockchain innovations company Factom to Inveniam Capital Partners is viewed as a blessing in disguise for this non core legacy asset which has blighted SEED’s net asset value credentials.

He is however refusing to accelerate plans about Leap Gaming to appease a minority group of shareholders.  McDermott is on the board of Leap with SEED holding a substantial portion of the business.

“I know investors would love me to rush and get just anything done with it, I believe that the right way to do these things is to get the most amount of value possible.  Even though it’s not core to our strategy going forward, it is a core asset for us and therefore we must get a good result from it.”   McDermott says that he is very much entrenched in a UK IPO process and they are moving ever closer to it.  “There is a very slim chance it could be this year.”

Listen to Ed talking to Sarah Lowther about the core cannabis assets in the fund, and the mergers and acquisitions opportunities being explored where Leap is concerned.

Watch Ed and Vice President of Investment Analysis Alfredo Pascual join the rest of the board as the company presents its AGM.

Access the updated Key Information Document about this close-ended investment company

Follow the company on Twitter@SEEDInnov


The author was remunerated but does not hold shares in the company