FastForward Innovations Ltd (LON:FFWD) said it invested a further £50,000 in cannabidiol (CBD) consumer goods group South West Brands (SWB) by way of a 12-month, 8% convertible loan note (CLN) as part of a funding round for SWB to raise £100,000.
The AIM-listed investment firm said the funds raised by SWB will support its plans to float on the London Stock Exchange. The latest investment takes the total invested by FFWD to date to £300,000.
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The CLN will automatically convert immediately prior to SWB’s IPO at a 20% discount to the IPO price per share or on a change of control prior to the first anniversary of the note issue.
In the event of SWB’s IPO, FFWD will receive one warrant for every four shares received at the IPO price.
"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”, FastForward chief executive Ed McDermott said in a statement.
"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", he added.