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Jersey Hemp

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The only British company licensed to grow, process, extract, bottle and distribute organic CBD.

110%
 - 
Funded 22 Sep 2021
£1,100,000 target
£1,242,887 from 629 investors
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Business overview

Location St Helier, Jersey
Social media
Website jersey-hemp.com
Sectors Healthcare Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 128968
Incorporation date 30 Apr 2019
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Investment summary

Type Equity
Valuation (pre-money) £17.5M
Equity offered 6.51%
Tax relief N/A
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Business highlights

  • Supply Chain from Seed to Bottle
  • Organically Grown
  • Offline & Online Distribution Channels in place
  • Ready to Scale & IPO Team Engaged
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Key features

  • Secondary Market
  • Nominee investment min. £10.20 +

Idea

Introduction

Jersey Hemp is the first fully vertically integrated hemp farm in the British Isles to have received a licence to cultivate and produce British-grown CBD. ​

Working directly with local government and agricultural experts to implement best in class, organic farming practices, without the use of synthetic pesticides and herbicides​.

Our product range is of the highest quality, fully compliant CBD oil and food supplements with plans to launch wholesale extracts and a cosmetics range in 2021​.

Our Novel Foods dossier was submitted to the UK Food Standards Agency in Q1 2021​.

We have established a joint venture with a UK listed international CBD group to register the first new Hemp cultivars in the UK/EU seed catalogue which could provide material commercial and licencing opportunities for higher-yielding Hemp seeds​.

Substantial accomplishments to date

2017 - we received our trial licence from the government to cultivate hemp.

A 1-year trial licence was granted, and we successfully harvested the first crop of hemp in Jersey for 100 years​​

2018 - Land secured at Warwick Farm​​ | 3-year industrial hemp licence granted​​

2019 - Extraction licence awarded​​ and a £2m seed investment round completed​​​​

2020 - Significant expansion of flower production​​ and huge investment in the facility to maximise cultivation capabilities​​

Joint venture with international CBD group to establish seeds breeding & certification program.

2021 so far - First new Hemp cultivars submitted for registration in the British catalogue

Engaged professional advisors to help list the Company.

Recruited our new CEO, an experienced business leader with a background in banking, industry and private equity, predominantly within FMCG channels

In negotiations to acquire a well-established distribution channel

Negotiating to acquire more of our joint venture partnership.

Investors perk

For anyone investing over £50, we will send you a 10ml 500mg bottle of our incredible CBD Oil.

Monetisation strategy

We already have a website, a retail shop in Jersey and a sub-contracted distribution centre in the UK.

We also already have a sales agency in London who has already got us sales from Selfridges amongst other well-known brands.

We will use the proceeds of the investment to assemble an expert team of marketers in-house to help us grow awareness, prepare digital campaigns and secure brand ambassadors as well as attempt to acquire a proven distribution channel.

In partnership with a London listed plc, we have also submitted two new seed varieties to be registered, called Quennevais and Varou. We believe these new varieties will create huge opportunities to wholesale seeds to other growers which have a much higher CBD content.

Use of proceeds

Strong focus on sales growth across multiple channels including potential acquisitions of proven distribution channels

Sales & Marketing

- acquire proven distribution channel

- expert team assembled to expand reach and awareness across all channels

- grow brand ambassadors

- scale content further

Operating Costs and Capex

- purchase fencing and new machinery to grow more controlled substances

- continue to fund operating costs whilst revenues grow further

Key Information

Convertible Loan

The company has a £260,000 convertible loan, with a 10% annual interest rate, that has accrued £8,405.38 to date, which will convert to equity after this round and dilute existing shareholders. Conversion will occur at the same pre-money valuation as this round, being £15,173,395.90, and shares issued will be A ordinary shares, which carry equivalent economic and voting rights to the B and C ordinary shares.

In consideration for the convertible loan, the lenders received a total of 33,699,997 additional shares, which have been factored into the pre-money valuation of this round.

Step-in Rights

The majority of the investors (who will be defined under the shareholders agreement and comprise non-management shareholders) in the Company are able to appoint two non-executive directors, referred to as “Investor Directors”.

In any of the following events occur, and either of the Investor Directors consider the consequences are likely to be to the material detriment of the Company, or the interest of Investors as shareholders of and lenders to, the Company, either Investor Director will count as quorum at any meeting of Directors until the event has been rectified:

(a)Any one or a combination of Directors (excluding Investor Directors), Founders or the Company are in material breach of any of their obligations in the shareholders’ agreement; or

(b) The Directors are in material breach of their service or employment agreements (which has not been remedied for 14 days after receiving notice); or

(c) The Company materially breaches its Articles; or

(d) There is any breach of the Loan Note Instrument (details of which are set out below); or

(e) The cash assets of the Company fall below £300,000.

Outstanding debt

The Company has the following outstanding debt:

- £20,000 unsecured loan, interest-free and repayable on demand;

- £124,000 unsecured loan, interest at 10% per annum with no timeline for repayment at present;

- £48,283 from the government of Jersey as a rent, sales tax and social security holiday for Q2 and Q3 of 2020 as part of their support COVID measures. This amount due is interest-free and repayable monthly over three years starting Q2 2022;

- £174,000 of 3 finance leases for large machinery, repayable at £3,497 per month over a five-year term.

- £1,647,450 of fixed-rate, secured loan notes totalling, with an interest rate of 10% per annum beginning in November 2022, to be repaid by November 2024.

Investors perks

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Jersey Hemp has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 29 July 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £17,507,765

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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