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Tonic Health

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Tonic Health makes max strength no sugar supplements to deliver real and tangible Immune health.

159%
 - 
Funded 12 May 2023
£500,000 target
£798,595 from 184 investors
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Business overview

Location London, United Kingdom
Social media
Website www.tonichealth.co/
Sectors Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 12174856
Incorporation date 27 Aug 2019
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Investment summary

Type Equity
Valuation (pre-money) £5.1M
Equity offered 13.45%
Tax relief

EIS

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Business highlights

  • 4.4X revenue growth Q1 2023 vs Q1 2022*
  • Popular social brand: 70 million views in the last 10 months
  • 4,000 distribution points incl. Tesco, Sainsbury’s et al
  • Walmart USA listing confirmed for 200+ stores
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Key features

  • Secondary Market
  • Nominee investment min. £26.60 +
  • Direct investment min. £10,000.00 +

Idea

Introduction

Did you know that recommended daily dose of your vitamin was originally designed over 70 years ago only to prevent a deficiency… not give you optimal health? We spend approximately £123bn globally on health supplements a year…

…Yet according to a study taken in 2018 by Forthwithlife, over 74% of us still have a Vitamin D deficiency that effects our health and immune system.

So at Tonic, we make real nutrition which means, maximum strength doses, without the sugar and junk ingredients and at affordable prices.

Our range of 5 vitamin drinks have been informed by external scientific research, to help address customer nutrition needs at different stages:

1. General health & well-being.

2. Strengthen the immune system for prevention.

3. Fuel the immune systems in times of need.

Yet the supplement industry is crowded and confusing. So we aim to help people, by creating a social media content platform to encourage people to be healthier. This has driven over 70 million views in the last 10 months.

Substantial accomplishments to date

- First profitable month in January 2023! This was our biggest month ever across all channels (Retail, D2C, & Amazon) with over £113k revenue.*

- Listed in over 4,000 distribution points including Tesco, Sainsbury’s, H&B, Wh Smith, Ocado, and Victoria Health.

- Have secured a major US retailer launch going live in June which will list our full range and NPD in a further 1600 distribution points.

- Rate of sale outselling leading competitors such as Centrum and Redoxon in some of our product ranges in Tesco & Sainsbury's**

- Built a community of over 300,000 followers across our socials and newsletter. Having delivered an average of 7 million views per month on social media.

-Raised over £1m to date from an exceptional team of investors including an ex-president of Unilever and the founder of New Look.

Monetisation strategy

Tonic’s Omni-channel distribution strategy allowed us to deliver profitable revenue* in the month of Jan 2023 in the UK, which we believe will make us resilient to market headwinds::

- Retail, Health, Pharmacy

- Direct-to-consumer; website and Amazon.

With our rate of sale performing in retail and low customer acquisition costs online, we believe we are in a strong position to scale the business rapidly in both the UK & USA.

What’s down the line? We have 4x new lines launching this year in the USA and UK which we expect to drive growth into the brand as we apply our popular principles to additional categories like Kids.

Use of proceeds

We’ve got a great product which our customers love, and a superb team focused on driving our mission forward. Working on our proven model, your investment will go into four key areas to help drive growth.

1. New market investment
Support the US Launch in our first major retailer.

2. Team growth
Build out the team to support our growth.

3. Growth and Marketing
Continue building brand awareness & audience

4. Stock Investments
Plan to begin developing Tonic’s first hay fever product

*Based on unaudited management accounts

** Based on Nielsen data of Sainsbury’s supermarket on a weighted distribution basis showing last 6 Weeks data to January 31st 2023.

Key Information

Share Classes

The company currently has 2 classes of shares, A Ordinary and B Ordinary. All investors in this round, including Seedrs investors, will be receiving A Ordinary shares.

Seedrs investors will receive A shares which have preferential rights over B shares. The founder has B shares which is a lower class and ensures all major business decisions need to go to the A shareholders for a vote.

Material Debt

The company has the following outstanding loans:

1. £32,500 bounce back loan at an interest rate of 2% per annum. The loan is to be repaid in December 2026

2. £80,000 Wayflyer Advance DAC loan at an interest rate of 6%. The loan is to be repaid in monthly instalments until it is fully repaid in July 2023.

The funds raised from this investment round will not be used to repay these loans.

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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

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 Tonic Health has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 31 March 2023 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 £5,130,581

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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