LONDON, UK: South West Brands, the multi-brand cannabidiol consumer goods company, announced its intention to apply for admission of the Company’s ordinary shares to commence trading on the standard segment of the Official List and to trading on the Main Market for listed securities of the London Stock Exchange.

Concurrently with Admission, the Company is proposing to raise equity through the placing of new Ordinary Shares (the “Fundraising”) to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021.

Key Highlights

·    South West Brands is following the final procedures for the Admission

·    South West Brands will be the first multi-brand CBD-focused consumer goods business to list on the London Stock Exchange. The Group develops, licences, and markets CBD brands to consumer markets across the UK

·    The Company is engaging with UK institutional funds and sophisticated investor clients of Arden Partners to raise equity, conditional on Admission

·    The Group will use the proceeds of the Fundraise following the Admission to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission.

·    By utilising its existing group structure and partner relationships to commercialise the IP, South West Brands will develop a scalable brand IP portfolio

·    The Company is in an exceptional position to capitalise on the current window of opportunity presented by the recent lifting of restrictions and regulatory progress in the CBD industry in the UK

·    South West Brands is led by a highly experienced all-female management team and well-respected board

Rebekah Hall, South West Brands’ CEO, commented:

“This is a key moment in the development of the CBD industry. South West Brands is uniquely placed to take advantage of this growing market and the significant opportunity that exists in branded goods. The time is right to advance consumer products expertise, discipline, and structures that can elevate the industry and consumer experience, ultimately building world class brand assets that utilise CBD.

“Our listing on the London Stock Exchange will enable South West Brands to access the new pool of cannabis investors that has grown in London following the successful admission of a number of cannabis companies in 2021. The Admission will allow the Group to advance to the next stages of its growth plans, and build a suite of strong brands that not only utilise CBD, but drive consumer engagement and product sell-through, something which has been missing in the industry thus far.”

South West Brands will use the funds raised on Admission to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Group’s brand marketing and promotion activities will be used to propel its brand assets into greater market awareness, building value in its portfolio.

The Group operates a working capital light model that allows capital to be invested directly in building brand value, rather than funding product cycles, making the business scalable and agile in a market moving at pace.

The all-female management team brings together extensive experience from both the consumer products sector and the CBD industry, supported by an exemplary board with experience across brand building, marketing, licencing, finance, and cannabis.

Given the recent changes in CBD regulations, South West Brands is in a prime position to capitalise on opportunities within the developing sector. The Company has identified key product areas and markets which it will look to build and develop quality CBD brands that address areas of underserved consumer need, primarily:

·    Drinks

·    Menstrual cycle care

·    Generation Z Skincare

·    Sport

·    Men’s holistic wellness

·    Menopausal care

·    50+ supplements

South West Brands has a portfolio of brand IP which includes Botanic Lab, the first CBD soft drink launched in Europe in 2018. The Group has two further brands in development that are expected to launch in Q3 2021: Love,MeMeMe a Generation Z focused beauty and wellness brand, and FEWE, a menstrual cycle care brand.