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Tonic Health

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We make science backed, all-in-one vitamins to fuel your immune health and end unnecessary illness.

221%
 - 
Funded 2 Jan 2022
£200,002 target
£442,599 from 330 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) £4.7M
Equity offered 8.66%
Tax relief

EIS

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Business highlights

  • £94,656 revenue in last 3 months with only £9k media spend
  • 49% average monthly D2C growth in the last 3 months to October
  • Listed in 2000 distribution points incl. Sainsbury’s & Boots
  • Featured in Telegraph and the Daily Mail with a community of 25k
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Key features

  • Secondary Market
  • Seedrs nominee min. £27.13 +
  • Pay by Bank payments not accepted

Idea

Introduction

Tonic’s mission is to end unnecessary illness by championing the power of our immune system. We restore your biochemistry to boost immune health with high-dose formulas that contain scientifically backed vitamins, minerals and plants.

74% of the UK have sub-optimal vitamin D levels, which is why we needed to create a solution to address this issue. Our range of 5 immunity drinks formulated with a leading doctor have two functions:

1. Strengthen the immune system for prevention

2. Fuel the immune systems to support treatment and recovery from cold and flu.

We then paired these with tech, diagnostics, and expert advice to build deep customer relationships. You can text our nutritionist 24/7, you can check your immune health biomarkers with at-home blood testing kits through our partnership with Thriva and learn from scientists on our podcast.

Substantial accomplishments to date

-In under two years since our founder went full time, we've made over £417,000+ of sales with £94,656 revenue in from August to October this year*.

-Last 90 day repeat purchase rate to 1st November at 61% of customers with subscriber churn rate at only 5.7% in November.

-Listed in over 2,000 distribution points including Sainsbury’s, Boots, H&B, Wh Smith, Ocado, Victoria Health, Chemist Direct, Medicare and many more.

-Rate of sale matched those of leading incumbents’ Sambucol and Emergen-C**

-Conducted clinical trial measuring the performance of Tonic on immune health which showed a 26% improvement versus placebo.

-Built a community of over 25,000 followers across our socials and newsletter.

-Launched ‘The Power Within Us’ podcast – with doctors, nutritionists, and authors from all over the world joining for conversations on the power of natural health.

-Raised over £665k to date from an exceptional team of investors including an ex-president of Unilever and the founder of New Look.

-Have launched and are trading in the USA ready for strong growth in 2022.

*Based on unaudited management accounts

** Based on Nielsen data of Sainsbury’s supermarket on a weighted distribution basis showing last 6 Weeks data to April 10th 2021.

Monetisation strategy

Since day one we have taken a brand first approach with a 5-year equity partnership with And Rising (the scale-up agency of Sweaty Betty) to win customers through the power of brand.

Tonic’s multi-channel distribution strategy aims to deliver diversified revenue growth by selling our range across all key channel verticals both in the UK and USA:

- Retail and Pharmacy

- Direct-to-consumer; website and Amazon

What’s down the line? Our tech plans will allow us to develop additional intellectual property and integrations with wearable health tech to predict when consumers are about to get sick.

The immune system is everywhere. It is involved in so many processes in the body from inflammation to hay fever. This gives us a clear pipeline of NPD to drive growth.

Use of proceeds

We’ve got a great product which our customers love, and a superb team focused on driving our mission forward. Working from our proven platform with low cash burn (Q3 average £10k per month), your investment will go into four core areas designed to help us grow, while further establishing Tonic as a leading immune health brand.

1. New market investment
Support the US D2C launch and fuel growth, we need funds to support growth.

2. Growth and marketing costs in the UK
Continue building awareness & audience in the UK.

3. Team growth
Hire a head of e-commerce to support UK and US growth.

4. NPD development
Develop and launch Tonic’s first hay fever product.

Key Information

Outstanding Debt

Please note the company has an outstanding bounce back loan of £32,500 from Starling Bank accruing interest of 2.5% per year with a maturity date of 08.12.2026.

The company also owes their manufacturer approximately £18K with the agreement that this will be paid during the next production run round.

The funds raised as part of this round will not be used to repay these loans.

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.

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.

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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 £4,664,352

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.

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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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