Zoetic International plc (LON:ZOE), the London-listed vertically integrated CBD company, has provided a trading update ahead of the Company’s annual general meeting to be held at 3.00pm today and the investor presentation that follows at 4.00pm GMT.
Following a successful trial in a selected beta stores, the Company has received a significant order under one of its existing distribution contracts to roll out stock of its Chill range of tobacco-substitute CBD products in a number of convenience store outlets throughout the USA. The Directors believe that this is the latest demonstration of the attraction of its Chill brand and marks the “crossing the Rubicon” to full commercialisation that has resulted from excellent consumer feedback during the beta phase.
The transaction to sell the Group’s interest in DTU and the Kansas Nitrogen Assets (as set out in the announcements of 27 May, 8 July and 3 August 2020) to Path Investments plc will not be able to be concluded within the long-stop date included in the original asset purchase agreement, being 31 October 2020. The Company is currently considering its options and anticipates providing an update to shareholders within the next two weeks.
Antonio Russo, Co-CEO of Zoetic International, commented, “We are delighted with this order, which we view as the next important step in our progress towards being a substantial player in the American tobacco-replacement market.”
Trevor Taylor, Co-CEO of Zoetic, commented, “While this further delay to exiting our legacy natural resources business is frustrating, we are determined to ensure we get the best deal for our shareholders.”