SEED Innovations (AIM:SEED) has taken part in a £4.5m financing of portfolio company Clean Food Group (CFG) via a convertible loan note (CLN) led by Clean Growth Fund and New Agrarian.
The funding will support CFG’s commercial scale‑up following its September acquisition of a one‑million litre fermentation facility in Knowsley: completing scale‑up, expanding capacity and accelerating commercialisation. CFG also secured a £700,000 non‑dilutive Innovate UK grant.
SEED holds 7,161,336 ordinary shares in CFG (c.4.5% fully diluted), valued at £1.7m in SEED’s 2025 interim report; the new CLN lifts aggregate exposure to c.£1.98m against a total invested cost of £647,000. The £260,000 investment will be met from SEED’s existing cash of approximately £2.7m, SEED said.
"Our strategic focus remains firmly on robotics and AI. However, we retain a number of legacy investments, which we will continue to support selectively where we see compelling opportunities," Jim Mellon commented.
"We are extremely pleased to have the continued support of Clean Growth Fund and a new partner in New Agrarian," Tom Ellen, CFO of Clean Food Group, said.
SEED’s £260,000 tranche carries a 12% p.a. coupon, converts prior to maturity at a 20% discount to a future equity round (or a 20% discount on sale), and, if not converted earlier, will convert at maturity at 16.5p per share in August 2027.
