Further Investment in South West Brands Limited

RNS Number : 3611E

FastForward Innovations Limited

07 July 2021

 

FastForward Innovations Ltd / AIM: FFWD / Sector: Closed End Investments

7 July 2021

FastForward Innovations Ltd ("FastForward" or, "FFWD")

Further Investment in CBD Brand Business, South West Brands Limited

FastForward Innovations Ltd, the AIM quoted company focusing on making investments in fast growing and industry leading businesses, is pleased to announce that it has invested a further £50,000 (the 'Investment') in South West Brands Limited ('SWB'), a London-based company 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 12-month, 8% Convertible Loan Note ('CLN') as part of a funding round by SWB to raise £100,000. The Investment takes the total amount invested by FFWD to date to £300,000.

Highlights

● Further investment in pioneering multi-brand consumer goods group developed specifically for the CBD industry focusing on the health & wellness segment

● Female-led, world-class team of experts in cannabis / CBD, brand building, consumer goods, licensing, value creation and finance

● SWB recently announced its intention to float on the London Stock Exchange; the funds raised will support SWB with this process

● Strong market dynamics - according to Forbes Business Insights, the international cannabis market is expected to grow from USD10.60 billion in 2018 to USD97.35 billion by 2026

Ed McDermott, CEO of FastForward, commented: "We are thrilled to be making an additional investment into SWB, which has announced it is on the path to listing on the London Stock Exchange imminently. This additional investment, which will help further drive the growth of the company, will also add to our expanding exposure to listed cannabis-focused investments.

"SWB operates in a market that is forecasted to have staggering growth over the coming years.  As a pioneer within the CBD space, Rebekah Hall, leading a highly experienced, all-female, management team, is creating a credible, sustainable and scalable consumer CBD business; we look forward to supporting Rebekah and her team on their journey as they move swiftly towards several exciting brand launches."  

Principal Terms of the Convertible Loan Note

The CLN will automatically convert as follows:

· Immediately prior to an IPO of SWB at a 20% discount to an IPO price per share (it being noted that any shares issued to FFWD prior to an IPO may be subject to a lock-in or orderly market arrangement); or

· On a Change of Control prior to the first anniversary of the issue of the CLN.

In the event of an IPO of SWB, FFWD will receive one warrant for every four shares received at the IPO price.

Interest shall accrue on the CLN at a rate of 8% per annum.

This CLN will not qualify as a qualifying fundraise under the terms of the Company's original investment in February 2021.

About South West Brands

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.  Currently seeking a listing on the London Stock Exchange, 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, SWB believes, be defined by the brand builders rather than the cannabis growers. 

SWB was established to take advantage of this escalating market and monetise the 'last mile' of the cannabis supply chain (brand, route to market and consumer engagement), whilst raising the bar to a new level of powerful and pioneering consumer brands with a global reach.  It will develop and acquire brands in high margin, high volume product categories and exploit them through agreements with celebrity partnerships and licensed operating partners that have established manufacturing and distribution capability in relevant consumer segments.  With a high EBITDA margin approach with low capex and working capital requirements, SWB is built to scale efficiently and quickly to take advantage of the window of opportunity that exists in CBD consumer products.

Schedule 4 Disclosure

In FFWD's announcement dated 1 February 2021, the Company stated an initial £250,000 investment into SWB. As SWB is a new company with no historic trading, asset, or revenue information available in the public domain and which is launching its first brands in 2021, FFWD has no further financial information to disclose on the performance of SWB since the previously stated announcement other than as set out above in relation to the anticipated IPO. However, it is likely further information will be released to the market by SWB as part of its listing process.

ENDS

For further information on the Company please visit www.fstfwd.co   or contact:

Ed McDermott Lance de Jersey	FastForward Innovations Ltd	E: [e-mail]
James Biddle Roland Cornish	Beaumont Cornish Limited, Nomad	T: (0)20 7628 3396
Isabella Pierre Damon Heath	Shard Capital Partners LLP Broker	T: (0)20 7186 9927
Catherine Leftley Charlotte Hollinshead	St Brides Partners Ltd, Financial PR	E: [e-mail]

Notes

FastForward Innovations is an AIM quoted investment company focused primarily on disruptive high growth life sciences and technology businesses particularly within the medical cannabis arena. The Company's strategy is to identify early-stage opportunities that have an upcoming investment catalyst and grow its portfolio in terms of value whilst limiting the number of investee companies to a level where relevant time can be devoted to each.

 

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