Mama Bamboo
Mama Bamboo has developed a range of nappies that are made from organically and sustainably grown bamboo, compostable liners and packaging, and are free from harmful chemicals. They have also developed complementary baby wipes using 100% compostable bamboo fibre, which contain 99.4% purified water and a mostly plant-based cleanser. Mama Bamboo is registered with the Vegan Society and has been certified by NatureWatch as animal cruelty-free.
Conventional disposable nappies and wipes require crude oil and petrochemicals in their production and are packaged in virgin plastic wrapping. They contain a lot of plastic and can take 400 years to degrade in landfill. Mama Bamboo nappies use mostly plant-based materials which can biodegrade more than 60% within 3 months and up to 80% over 2 years in the right conditions. Mama Bamboo wet wipes can compost completely within 3 months.
The founder, Laura Crawford, established Mama Bamboo in 2018 after having her second child and being dissatisfied with the disposable nappies available on the market due to their impact on the planet and on babies’ skin.
Since its inception in 2018, Mama Bamboo has achieved significant organic sales growth – income for the year ending 31 July 2021 is expected to be around £839,000, representing growth of around 127% on the previous year. This forecast is based on 9 months of actual income and 3 months of forecasted income.
Mama Bamboo is the only UK nappy brand to be B-Corp certified and is the highest rated disposable nappy brand by The Ethical Consumer.
The share offer
Mama Bamboo's growth to date has been funded by its directors and their family members. The company is now seeking £540,000 to be used to invest in marketing and technology in order to accelerate sales growth, to provide vital working capital as the company continues to grow, and to invest in a range of complementary products.
This is an investment in shares in an early stage company. The company has no plans to pay dividends (or returns) in the short term and there is no agreed timeframe for the shares to be bought back.
Investing in the shares of an unlisted company involves risks, including potential for loss of capital and future dilution, and lack of liquidity, and should only be considered as part of a diversified investment portfolio.
EIS tax relief
In May 2021 HMRC provided advance assurance that this share offer should meet the qualifying conditions of the enterprise investment scheme (EIS).
EIS is a tax relief available to individual UK taxpayers who invest in qualifying early stage and growth companies established in the UK.
The main benefits of EIS for investors are the ability to offset 30% respectively of the investment amount against income tax liability for the current year and an exemption from capital gains tax on the disposal of shares after the three-year qualifying period.
The tax treatment of the EIS scheme depends on your individual circumstances and may be subject to change in future.
Key terms
Issuer
Mama Bamboo Limited
Environmental impact
Reducing the requirement for crude oil and
petrochemicals in production. Carbon offsetting all freighting emissions
through the Ugandan Bamboo Village programme. Reducing the volume of single use
plastic being sent to landfill.
Term
This is an investment in the shares of an unlisted company and there is no guarantee over the timing of an exit. Investors should therefore be prepared to hold the shares for the long term.
Repayment
There is no set repayment date. The directors of Mama Bamboo intend to procure an exit opportunity for investors after the three-year EIS qualifying period but there is no certainty that they will be successful.
Minimum investment
£60 (3 shares)
Return
A return on investment is likely to be achieved through the receipt of dividends and/or a sale of the company’s shares in the future. Mama Bamboo is not planning to pay dividends for at least three years and any dividends payable after this are dependent on Mama Bamboo’s financial performance.
Offer price per share
£20
Percentage of issued share capital represented by the share offer assuming full subscription
20%
Eis
Shares should be eligible for EIS, subject to formal approval by HMRC.
Transferability
The shares are transferable, but they are not listed on any recognised investment exchange, which means that investors will be largely reliant on the directors of the company for procuring an exit. An investor who wishes to sell their shares in the meantime will have to find a willing buyer and agree a price with them, which in practice could be difficult.
Minimum raise
£270,000. If the minimum raise isn't reached, then investors’ monies will be returned with no accrued interest.
Timetable
The Offer will close on 10 September 2021 unless the £540,000 target has been reached earlier or the Offer is extended by the Directors at their sole discretion. Shares are issued 14 days after the closing date.
Risk warning
Investing in the shares of an unlisted company involves a high degree of risk, including potential for loss of capital and future dilution, and lack of liquidity, and should only be considered as part of a diversified investment portfolio.
