In QuotedData’s morning briefing for 24 April 2023:
- SEED Innovations (SEED) has announced the conversion of £600,000 Convertible Loan Notes (“CLNs”) in Northern Leaf, a Jersey based medical cannabis cultivator, following its successful £3 million pre-IPO fundraise. The CLNs were converted into 1,236,331 preference shares in Northern Leaf, representing 2.2% of the enlarged equity of Northern Leaf. At the price of the recent raise, SEED’s holding is valued at £960,000, a 60% uplift (1.6X) on its original investment.
- In Chelverton Growth Trust’s (CGW) half-year report, the board has announced its intention to formulate proposals to shareholders to maximise the trust’s value, intending to complete the proposals in 2023. The trust is just too small and costs are high despite Chelverton Asset Management (CGW’s investment manager) waving its fee entirely and two board members electing to waive part of their fee. [We’ve felt that something needed to happen with this fund for some years. The same is true of the other sub-£10m market cap UK smaller companies focused trusts, SVM UK Emerging and Athelney.]
- Supermarket Income REIT (SUPR) has acquired a Tesco omnichannel supermarket in Worcester, for £38.3m, reflecting a net initial yield of 6.0%. Tesco has been operating at the 6.5 acre site for over 30 years. The site comprises a 47,297 sq ft net sales area supermarket, a petrol filling station and 515 car parking spaces. The store is also an online hub for Tesco, operating nine home delivery vans and a Click & Collect facility. The store is being acquired from British Steel Pension Fund, with an unexpired lease term of 12 years, with annual upwards only RPI-linked rent reviews (subject to a 4.0% cap and 0.0% floor). The acquisition is being funded from the first tranche of sales proceeds of the company’s stake in the Sainsbury’s Reversion Portfolio.