FastForward Innovations Limited (LON:FFWD) said it has invested £250,000 in South West Brands Limited (SWB), a London-based group targeting the cannabidiol (CBD) market.
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. If the loan notes are converted into equity, FastForward could end up with a 5% equity stake in SWB.
The funds raised will be used to launch and market SWB's pipeline of new CBD brands in several markets, including its first new brands in the menstrual cycle care and beauty categories in April 2021
“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,” said Ed McDermott, the chief executive officer of FastForward in a statement.
“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,” he added.