TIDMFFWD
RNS Number : 4538N
FastForward Innovations Limited
01 February 2021
FastForward Innovations Ltd / AIM: FFWD / Sector: Closed End
Investments
1 February 2021
FastForward Innovations Ltd ("FastForward" or, "FFWD")
New 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 GBP250,000 (the
'Investment') in South West Brands Limited ('SWB'), 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 GBP500,000. The
CLN will convert at the next qualifying fundraising event into
ordinary shares in SWB at the lower of a 37.5 per cent. discount to
the next issue price and a conversion enterprise valuation,
including the GBP500,000 CLN, of GBP5m.Were the Company's
investment to be converted at this conversion valuation it would
have an equity interest of 5%.
Highlights
-- Investing 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
-- Funds raised will be used to launch and market SWB's pipeline
of new CBD brands across multiple product verticals, including its
first new brands in the menstrual cycle care and beauty categories
in April 2021
-- 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 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."
Principal Terms of the Convertible Loan Note
All outstanding notes shall automatically convert into fully
paid ordinary shares in SWB at the lower of a 37.5 per cent.
discount to the next issue price and a conversion enterprise
valuation of GBP5m immediately prior to and conditional upon the
earlier of the following events:
a) Completion of the next qualifying fund raising following the
issue of the notes but prior to the second anniversary of the date
upon which the notes were issued; or
b) Completion of a change of control prior to the second
anniversary of the date upon which the notes were issued; or
c) On the second anniversary of the date upon which the Notes were issued.
Interest shall accrue on the CLN at a rate of 6% per annum.
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. 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.
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.
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.
ENDS
For further information on the Company please visit www.fstfwd.co or contact:
Ed McDermott FastForward Innovations E: info@fstfwd.co
Lance de Jersey Ltd
James Biddle Beaumont Cornish Limited, T: (0)20 7628 3396
Roland Cornish Nomad
-------------------------- -------------------------------
Isabella Pierre Shard Capital Partners T: (0)20 7186 9927
Damon Heath LLP
Broker
-------------------------- -------------------------------
Catherine Leftley St Brides Partners E: info@stbridespartners.co.uk
Beth Melluish Ltd,
Financial PR
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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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