LONDON: FastForward Innovations Ltd has invested £250,000 in South West Brands Limited, a London-based, group that is seeking to establish itself as a multi-brand consumer goods group developed specifically for the CBD industry.
The Investment is by way of a two year, 6%, Convertible Loan Note (‘CLN’) as part of a funding round by SWB to raise £500,000. The CLN will convert at the next qualifying fundraising event into ordinary shares in SWB at the lower of a 37.5 percent discount to the next issue price and a conversion enterprise valuation, including the £500,000 CLN, of £5m.
Were the Company’s investment to be converted at this conversion valuation it would have an equity interest of 5%.
Ed McDermott, CEO of FastForward, commented: “We are delighted to be making an investment into SWB, adding to our growing portfolio of cannabis-focused investments. Not only is it in a market which we are very excited about and have confidence in for future returns, but its team, led by ex-corporate financier, Rebekah Hall, is equally noteworthy, with proven experience in building large, successful, household name brands.
Currently, there are very few brands with real equity in the cannabinoid wellness vertical; as such, given its efficient business model including celebrity collaborations, we believe SWB has a first mover advantage in this exciting market. We are very much looking forward to working closely with Rebekah and her team.”
Rebekah Hall, CEO of South West Brands, commented: “SWB will house the global CBD brands of the future, bringing scale and purpose-led products to a segment that lacks real consumer cut through. This sector will be defined by brand builders and we intend to create The Hut Group of cannabis.
“We are delighted to now have the support of FastForward. With a portfolio of investments in the medical cannabis and CBD space, its team has a wealth of knowledge in the sector and the wider financial markets, which will be hugely beneficial as we look to rapidly build SWB. I look forward to working closely with them.
“My own experienced team combines a wealth of consumer brand and cannabis-sector knowledge. Our recent successful funding round involves experienced institutional investors and validates our vision to elevate the CBD segment to the next level of powerful consumer relevance. We look forward to introducing new brands to the market in 2021 and playing an active role in the process of market consolidation over the coming months.”
South West Brands is a London-based group that that is seeking to establish itself as a multi-brand consumer goods group developed specifically for the CBD industry. Its all-female management team is led by CEO Rebekah Hall, who is a pioneer in the burgeoning CBD market in Europe and regarded as one of the foremost experts on CBD consumer products. Rebekah spent 10 years working in Corporate Finance in the City having trained as a Chartered Accountant with PwC.
As one of the most talked about topics in consumer goods in the last two years, cannabis and specifically CBD, has the power to disrupt the retail landscape in an unprecedented way. The industry is at a pivotal stage and will be defined by the brand builders rather than the cannabis growers.
The funds raised will be used to launch and market SWB’s pipeline of new CBD brands across multiple product verticals; it is launching its first new brands the menstrual cycle care and beauty categories in April 2021.
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