17 Aug 2021 --- Hempseed oil skincare brand High Beauty has closed a US$4.17 million financing round, with the funding expanded three times to accommodate additional investments.
The funding will broaden the company’s D2C offerings, as well as its global distribution capabilities.
After initially seeking US$1.95 million, the oversubscribed financing round was expanded to US$2.5 million and then US$3.5 million before eventually closing at US$4.17 million.
“The immense interest we received in this raise is a testament to the work our team has done in building High Beauty into a multi-brand, international beauty company,” says Melissa Jochim, founder and formulator of High Beauty.
“After growing 2.6 times in 2019 compared with 2018, and significantly expanding our distribution channels in both the US and globally, we look forward to carrying these successes forward as we pursue our Series A financing in the near future.”
High Beauty’s products are free of psychoactive substances including THC and CBD.
High Beauty is touted as being 100 percent legal and free of psychoactive substances including THC and CBD.
“High is expertly formulated with Cannabis sativa seed oil in combination with bioflavonoids and terpenes to provide all the nutrients needed for healthy, beautiful skin,” says Jochim.
Exponential growth
The financing round comes at the heels of the launch of High Beauty’s second brand, canBE naturally, in the US.
Demand for High Beauty has risen significantly, with a growing list of global retailers in the US, Canada and Europe, the company says. This expansion led to “staggering” growth in sales from January 2019 to December 2019.
Demand for the products rose due to their formulation, which delivers sativa seed oil in combination with certified organic plant oils, high-potency antioxidants and pure plant essential oils for healthy, beautiful skin.
The financing round comes at the heels of the launch of High Beauty’s second brand, canBE naturally, in the US. Half of High Beauty’s existing shareholders, including lead investor RIV Capital, participated in the financing, accounting for US$1.07 million.
Seventeen additional investors contributed an additional US$3.1 million in new capital, including ARI Holding, an affiliate of High Beauty’s Middle East distributor, PIF.VC, Treehouse Global Ventures and Highlands Venture Partners.
Stubbs Alderton & Markiles, through its investment affiliate SAM Venture Partners, and Consolidated Design West, key vendors of the company, also participated in the round.
Lygos partnership
Furthermore, the company recently launched a line of biosynthesized cannabinoid products as well as high & bye for blemish-prone skin, both under its exclusive partnership with Lygos.
Lygos is a vertically integrated provider of sustainable specialty ingredients. The company is working with High Beauty to accelerate the formulation and commercialization of co-branded cosmetic products based upon a wide range of high-quality, pure and naturally derived cannabinoids.
Using an environmentally safe and highly adaptable methodology, Lygos CBx utilizes its novel production pathway to deliver valuable compounds that are not easily extracted from the cannabis plant.
The company offers a pipeline of multi-functional cannabinoids that feature purity, performance, sustainability and economic advantages. The cannabinoids are THC-free to ensure a consistent and safe consumer experience.
“Lygos’ proprietary technology platform delivers market-leading quality, purity, and formulation-precision at a significant cost and time-advantage relative to ingredients derived from the cannabis plant,” notes Eric Steen, Ph.D., CEO of Lygos.
“This partnership with the High Beauty team is a huge step forward in the beauty and cosmetic market for the Lygos CBx business. We are now providing kilograms of sustainable products that are naturally inspired and go beyond the plant.”
Previously, our sister website NutritionInsight reported on the booming CBD skincare market, despite the still unclear regulatory environment.
By Kristiana Lalou
