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OTO CBD

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Discover the power of CBD with thoughtful, effective, and premium CBD products.

142%
 - 
Funded 9 Oct 2021
£2,000,002 target
£2,856,421 from 310 investors
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Business overview

Location London, United Kingdom
Social media
Website otocbd.com
Sectors Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 11389551
Incorporation date 30 May 2018
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Investment summary

Type Equity
Valuation (pre-money) £18M
Equity offered 13.69%
Tax relief

EIS

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Business highlights

  • Premium proposition spanning wellness, beauty, drinks and spa
  • Presence in all of the UK's major premium retailers
  • Global growth with teams in the UK, Hong Kong and Japan.
  • Highly thoughtful and effective CBD products
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Key features

  • Secondary Market
  • Seedrs nominee min. £12.70 +
  • Pay by Bank payments not accepted

Idea

Introduction

Founded by husband and wife team, Gemma Colao and James Bagley, and a talented group of scientists and entrepreneurs, OTO was born out of a personal desire to share the wonder of CBD with as many people as possible. Since launching in 2019, OTO is redefining the UK’s CBD sector with sophisticated, simple and enjoyable products that fit into your daily rituals.

OTO exists to help you amplify the silence, so that you can ‘find your space’ in a busy, stressful, always-on world. Guided by nature, and backed by science, OTO creates luxurious and effective beauty and wellness products that easily enhance key moments of your day.

Everything OTO creates is researched, designed, and made in the UK, plant based, clean, cruelty free and vegan, zero sugar and no alcohol. OTO has created a highly unique and innovative CBD portfolio, including our bestselling sleep drops, luxurious CBD ritual skincare range, much loved pillow-mist, experiential CBD drinks, and the first CIBTAC accredited immersive experience.

Substantial accomplishments to date

Since launching in Harrods in September 2019, OTO has grown rapidly, positioning itself as a leader in luxury lifestyle and CBD at home and abroad. OTO now is available to enjoy at over 400 premium physical and online locations worldwide across luxury retail and hospitality.

Based on our market research, no brand has the luxury retail foothold (including online) that OTO does in the UK. In most of the accounts OTO has opened, they were the first CBD brand ranges. In many, OTO remains the single chosen CBD partner.

The brand has cut-through with hundreds of press mentions in the most premium and respected publications including Vogue, Forbes, Tatler, and The Economist. Shipping to over 50 countries, OTO has a presence in the UK, Europe, Hong Kong and Japan.

Since its inception, OTO has built a formidable reputation. From virtual consultations and wellness retreats, to keynote speeches and panel discussions at leading industry events across Europe, to invitations from national broadcast media to speak on the industry, the team behind OTO are ready to engage at all levels to help build the industry.

With almost £1.2m historical revenue, and a global team of 28, the business is poised for rapid growth and expansion.

Monetisation strategy

OTO sells its products directly to consumers and indirectly via premium wholesale and retailers.

Direct: OTO operates its own websites in the UK, Hong Kong and Japan. Our central marketing team support sales and marketing via the websites, sometimes working with 3rd party agencies for PR, social advertising and advanced technical support. The UK website is capable of shipping to c.50 countries internationally.

Moving forward, OTO is partnering with The Hut Group (THG) to build and operate websites in new territories (for example Spain) in local language and currency, to improve conversion, reduce complexity, and accelerate growth.

Indirect: 'Spas, Bars, Hotels and Retailers' is the strategy for indirect sales, offering premium CBD products and immersive experiences in venerable, luxury and heritage brands and locations to build trust, reassurance and make the premium market. We partner with distributors internationally to support our global growth.

Use of proceeds

We are raising £2m pounds for 3 important projects as a next step in our journey to help the world discover the power of CBD - Spa, Spain, and Sustainability.

1) Investing in our market leading Spa proposition, to deliver signature Spa treatments in 5* luxury locations in the UK and globally, helping more people experience the power of CBD.

2) Launching in Spain before Christmas with select luxury retailers and direct to consumer, getting an early mover advantage in an attractive premium market.

3) Investing in a sustainable future, where we further improve packaging and supply chain components and ingredients with the ambition of becoming the cleanest, greenest premium CBD brand in the world.
These projects will add significant value to the brand, and the business, helping to acquire more customers in a more sustainable way in line with the needs and the values of modern conscious consumers.

Investor 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 and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

Key Information

Oustanding debt

Please note the business has the following outstanding debt.

Outstanding balance: £25,000
Lender: Lloyds Bank
Repayment plan: £505 monthly
Interest: 2%
Start date: June 2021
End date: June 2025

Funds raised as part of this round will not be used to repay outstanding debt.

Share classes

Please note the business has two class of shares:

Ordinary:

-One vote per share
-One equal right per ordinary share in any ordinary share dividend declared
-Subject to first paying the amount due on the preference shares below, one equal right per ordinary share in the distribution of any surplus due to the ordinary shareholders on a winding-up or other return of capital
-No redemption rights attached to these ordinary shares

Preference:

-One vote per share
-Fixed dividend of 6% per annum on the issue price per preference share
-The distribution of any surplus due to the shareholders on a winding-up or other return of capital shall be applied first in paying up the higher of (i) The issue price and arrears of dividend (if any) on the preference shares or (ii) an amount payable if all preference shares had converted to the same number of ordinary shares
-No redemption rights attach to these preference shares

Investors in this round will be receiving Ordinary shares.

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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 webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, 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. Seedrs 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 Seedrs, 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 £18,004,923

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.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

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.

Seedrs nominee

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

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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 Seedrs Nominee). 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.

Warning

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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