Investee Company Update: Avextra AG

SEED Innovations Ltd, the AIM-quoted company investment company providing shareholders with exposure to early-stage health, wellness and medical cannabis companies to which, in normal circumstances, they have limited access to, is pleased to note the announcement released by its portfolio company, Avextra AG ('Avextra'), a German-based, European vertically integrated medical cannabis company.

SEED remains a holder of 2,242 shares in Avextra representing approximately 3% of Avextra on a fully diluted basis.

The following extract from the announcement is set out without material changes or adjustments and the announcement in full can be accessed from the following link: https://avextra.com/en/2024/01/avextra-invests-up-to-15-million-euros-in-the-development-of-new-medical-cannabis-research-in-partnership-with-iucs-cespu/

Start of Avextra AG announcement:

AVEXTRA invests up to 15 million euros in the development of new medical cannabis research in partnership with IUCS-CESPU

Strategic partnership deepens Research & Development of medicinal cannabis in areas such as clinical trials, development of medical devices, and extraction methodologies.

Avextra will actively participate in the supervision of master's and doctoral programs in Biomedical Sciences and Toxicology at IUCS-CESPU.

Investment supported by Iberis Capital, the largest individual shareholder of Avextra.

Lisbon, January 17th, 2024 - Avextra, the leading German manufacturer of cannabis-based medicines, has entered a strategic, long-term partnership with the Instituto Universitário de Ciências da Saúde-Cooperativa de Ensino Superior Politécnico e Universitário (IUCS-CESPU) focused on Research & Development (R&D) of regulator approved medicines based on the cannabis plant.

This agreement will be leveraged by an investment by Avextra of up to 15 million euros over five years, substantially supported by Iberis Capital, Portuguese private equity and the company's largest individual shareholder, with the potential for even greater investment in R&D depending on the research results. This is a major investment into research and pharmaceutical development with medical cannabis in Portugal. With an investment of nine million euros in Avextra, Iberis Capital has become an essential partner of the German company which completed an R&D center in Grândola in 2022.

Specifically, Avextra and IUCS-CESPU, through its 1H-TOXRUN research unit, will coordinate and manage R&D activities in various areas such as clinical trials, medical device development, extraction methodologies, and other groundbreaking initiatives and provide invaluable scientific support. This strategic partnership will enable Avextra's Alliance for Evidence-based Cannabis Medicine to advance to a new level of scientific excellence.

As part of the agreement Avextra will support and actively participate at IUCS-CESPU in the supervision of master and PhD students in Biomedical Sciences and Toxicology and foster cutting-edge pharmaceutical research with cannabis-based and psilocybin-based medicines.

"Avextra's Alliance for Evidence-Based Cannabis Medicine moves into the next phase with our partnership with IUCS-CESPU. With our shared commitment to cutting-edge pharmaceutical research with cannabis-based medicines, we will address significant unmet patient need across the European Union with innovative and regulator approved medicines" stated Dr. Bernhard Babel, CEO of Avextra.

Professor Ricardo Dinis-Oliveira, from IUCS-CESPU commented: "It is the union of efforts that makes us unique. We want to invest our unique resources into unlocking the therapeutic potential of the cannabis plant and psilocybin through combining the capacity of professionals from a Research Unit dedicated to the study of One Health & Toxicology (1H-TOXRUN - One Health Toxicology Research Unit) and the power of knowledge of the academic environment of the University Institute of Health Sciences, with the rigor and innovation in Research and Development of Avextra AG".

Luís Quaresma, partner at Iberis Capital explained: "We are proud to be actively involved in Avextra's growth, accompanying it on the path that will make it a leading European medical cannabis company. We look forward to seeing the results of this strategic partnership that AvextraA has entered into with IUCS-CESPU and 1H-TOXRUN, which brings Portuguese talent to the forefront of this sector's evolution."

About Avextra AG

Avextra is one of Europe's leading vertically integrated suppliers of high-quality cannabis-based medicines. Founded in 2019 and based out of Germany, the company focuses on the production of precisely formulated cannabis-based medicines. Avextra controls the entire value chain - from cultivation in Portugal to EU-GMP certified extraction and manufacturing in Germany. Avextra operates across continental Europe through an expansive distribution network of multiple channels and assets strategically developed for these key markets.