Seed Innovations Ltd shares shot up on Tuesday, after it said it will pay out a special dividend to shareholders.
Seed Innovations is an investor focused on early-stage health, wellness and medical cannabis firms. Its shares were up 28% to 2.75 pence each in London on Tuesday morning.
Seed Innovations said it will pay out a maiden special dividend of 1.0p.
On Monday, Seed said it received the remaining £2.4 million consideration from the sale of portfolio company Leap Gaming.
Seed sold Leap Gaming for €5.8 million to IMG Arena US LLC back in April last year. Leap provides virtual games for online, mobile and retail markets.
Chief Executive Ed McDermott said: ‘It has long been an ambition of ours to pay a special dividend to reward shareholders. This achievement underscores our confidence in the company’s current financial strength and future prospects, as we believe our existing portfolio and new investments have the potential in the next years to replace the value paid to shareholders now. Whilst we remain in difficult equity markets, we are seeing attractive investment opportunities particularly in businesses seeking to fund growth.’
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