20th Apr 2023 12:15
(Alliance News) - Seed Innovations Ltd said on Thursdsay its portfolio company South West Brands Ltd has entered into a sale and purchase agreement with OTO International Ltd.
The Guernsey-based investor in the medical cannabis, health, and wellness space said SWB will be bought by OTO for a consideration of GBP6.2 million, to be paid in OTO shares.
Seed will receive a total of GBP423,000 in OTO ordinary shares following the conversion of the convertible loan note Seed holds in SWB, and will be repaid GBP167,000 in cash.
Following a total investment into SWB of GBP500,000 by the company, the total return from the sale will be GBP590,000, 1.18 times the original price, said Seed.
OTO is a London-based wellness brand focused on holistic plant ingredients and cannabidiol.
Chief Executive Officer of Seed, Ed McDermott said: "It has been a very hard market for both small cap companies in general, and in particular CBD and cannabis related companies, and for SWB to be acquired for some GBP6.2 million is testament to the hard work and dedication shown by Rebekah Hall and her team in such a testing environment.
Shares in Seed were up 5.5% at 1.98 pence each in London on Thursday morning.
By Sabrina Penty; Alliance News reporter
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