Seed Innov Regulatory News (SEED)

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

4 October 2021

SEED Innovations Ltd ("SEED" or, the "Company")

Further Investment in CBD Brand Business, South West Brands Limited

SEED Innovations Ltd, the AIM quoted company focusing on making investments in fast growing and industry leading businesses with a focus on the medical cannabis, health and wellness space, is pleased to announce that it has invested a further £150,000 (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 second 12-month, 8% Convertible Loan Note ('CLN') as part of a funding round by SWB to raise £300,000. The Investment takes the total amount invested by SEED in SWB to date to £450,000.

Highlights

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

● Progress being made at SWB with two recent consumer brand launches:

o LoveMeMeMe, a healthcare brand who produce and market all vegan and cruelty free self-care products with CBD ingredients https://lovemememe.com; and

o FEWE, the world's first full cycle-care brand that is dedicated to helping women understand the science behind the female monthly cycle https://fewe.co.uk.

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

Ed McDermott, CEO of FastForward, 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. 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."

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 SEED 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, SEED will receive one warrant for every four shares received pursuant to this CLN 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 either the Company's original investment in February 2021 or the follow on investment made in July 2021.

About South West Brands

South West Brands is an all-female, 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. Consideration of, and progress towards, a possible listing on the London Stock Exchange remains however this is delayed from the original Summer 2021 timetable.

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.

In alignment with its brand acquisition strategy, SWB has recently launched two new successful brands; LoveMeMeMe launched at the start of August 2021, a healthcare brand who produce and market all vegan and cruelty free self-care products with CBD ingredients, and FEWE, launched in September 2021, the world's first full cycle-care brand that is dedicated to helping women understand the science behind the female monthly cycle.

Schedule 4 Disclosure

In the Company's announcement dated 1 February 2021, it reported an initial £250,000 investment into SWB. This was followed by a further £50,000 investment in July 2021. As SWB is a new company with no historic trading, asset, or revenue information available in the public domain and which has launched its first brands in 2021, SEED has no further financial information to disclose on the performance of SWB since the previously stated announcement.

ENDS

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

Notes

SEED 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.