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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 £6.2 million, to be paid in OTO shares. Seed will receive a total of £423,000 in OTO ordinary shares following the conversion of the convertible loan note Seed holds in SWB, and will be repaid £167,000 in cash. Following a total investment into SWB of £500,000 by the company, the total return from the sale will be £590,000, 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 £6.2 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. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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