Seed Innovations (SEED ) has invested a further £0.15m into the CBD brand business, South West Brands, as part of a funding round by the London-based company to raise £0.3m.

Today’s investment takes the total amount invested by SEED in SWB to date to £0.45m. 

The investment firm, which is focused on businesses operating within the medical cannabis, health and wellness space, detailed that the investment was made by way of a second 12-month, 8% Convertible Loan Note as part of a funding round by SWB to raise £0.3m.

In the event of an IPO of SWB, SEED will receive one warrant for every four shares received pursuant to this CLN at the IPO price while interest shall accrue at a rate of 8% per annum.

As an all-female, London-based business, South West Brands is focused on establishing itself as a multi-brand consumer goods group developed specifically for the CBD industry.

The Company recently launched two new consumer brands; LoveMeMeMe, a vegan-centric healthcare brand which utilises CBD ingredients and FEWE, the world’s first full cycle-care brand dedicated to helping women understand the science behind the female monthly cycle.

Ed McDermott, CEO of SEED, commented: “South West Brands have made considerable progress since our last investment with the successful launches of two consumer brands which, from what I have seen, have received a very positive reception from users to date.”

South West Brands is led by CEO Rebekah Hall, a former corporate finance professional who is now regarded as one of the foremost experts on CBD consumer products, SEED noted.

“These first brand  launches, which are generating SWB’s early revenues, are testament to the hard work Rebekah Hall and her team have put in, and I am pleased SEED are able to support SWB in their growth and I look forward to further advances by the team in their quest to grow a credible, sustainable and scalable consumer CBD business,” added McDermott.

Shares in Seed Innovations, formerly Fast Forward Innovations, were trading 0.62% higher today at 7.34p following the announcement.

South West Brands, launched back in January 2021 after raising cash from funds, including from Seed Innovations. Its investment was followed by a further £0.05m investment in July.

SWB was established to take advantage of the escalating CBD market and monetise the ‘last mile’ of the cannabis supply chain. The Company believes the industry is at a pivotal stage and will, it told investors, ‘be defined by the brand builders rather than the cannabis growers.’

‘With a high EBITDA margin approach with low capex and working capital requirements, South West Brands is built to scale efficiently and quickly to take advantage of the window of opportunity that exists in CBD consumer products,’ the firm highlighted in today’s statement.

SEED Innovations is an AIM quoted investment firm focused primarily on disruptive high growth life sciences and technology businesses particularly in the medical cannabis arena.

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