# Zoetic International to focus on non-nicotine smoking cessation products as part of portfolio

- Link: https://www.directorstalkinterviews.com/zoetic-international-to-focus-on-non-nicotine-smoking-cessation-products-as-part-of-portfolio/412826014
- Published: 2020-05-29T07:16:02+01:00
- Author: Giles Arbor

**Zoetic International plc** (LON:ZOE), the London-listed vertically integrated 
CBD and natural resources company, has today announced that it has filed US patent
applications for its method of manufacturing of its Chill brand of THC-free, smokable
CBD products.  This patent-pending method also includes a variation smoking cessation
product, employing combinations of nicotine and CBD, which is also THC-free.  The
Patent has been in development by the Company for over a year.

The Company believes that CBD may play a rapidly increasing role in smoking cessation
aides, and that its Chill branded tobacco-free, THC-free and nicotine-free products
are well-placed to take an increasing share of this market, and that the Patent 
will provide the Company, if it is issued, with a protected market-leading offering.
The Smoking Cessation market was estimated to be worth around $4 bn in 2019 in the
USA, with significant growth forecast (Source: Grand View Research).

It is the Board’s intention to focus the Company on non-nicotine smoking cessation
products as part of its portfolio of CBD products, so it has separately agreed with
Paul Mendell, the Company’s former Chairman, a sales agency and licence agreement
for the combined nicotine and CBD, and nicotine-only versions of the Patent on which
the Company and Mr Mendell will equally share any royalties and/or licence fees 
from third-party use (including any third-party introduced by Zoetic).  If in the
future the Company decides to utilise the combined nicotine and CBD, or nicotine-
only versions of the Patent, Mr Mendell will receive a 5 per cent royalty on any
sales by the Company.  The Company is not aware of any other tobacco-free, THC-free,
nicotine and nicotine/CBD containing products in the market, and hopes its agreement
with Mr Mendell will provide a valuable additional source of revenue in the future
with no additional costs.  No royalties or licence fees are payable by the Company
to Mr Mendell on sales of the Company’s Chill brand products that utilise the CBD-
only version of the Patent.  As part of the agreement with Mr Mendell, the Board
has agreed that his options over 1,000,000 ordinary shares of 1 pence each, exercisable
at a price of 10p per Ordinary Share until 8 October 2029 (as announced on 8 October
2019) shall be vested unconditionally.  If non-US patents are applied for, the Company
and Mr Mendell intend to establish similar arrangements to the above, however there
may be variance to accommodate local commercial conditions.

A second unrelated patent application has also been filed pertaining to drug compositions
that contain a cannabinoid.  The non-provisional patent relates generally to drug
compositions, and specifically to compositions in which an active ingredient is 
physically mixed with a cannabinoid, and/or chemically bonded to a cannabinoid to
form a prodrug, such that the cannabinoid modifies a pharmacodynamic and/or pharmacokinetic
profile of the active ingredient.  Zoetic will continue to work with Stephen Goldman,
a consultant to the Company and inventor of the technology, in efforts to prosecute
the patent over the coming months.  Together, the Company and Mr Goldman have worked
on the patent for over a year, since the original filing of the provisional patent
last spring.  Mr Goldman’s options over 1,000,000 Ordinary Shares, exercisable at
a price of 12p per Ordinary Share (as announced on 28 May 2019) shall be vested 
unconditionally.  Mr. Goldman will receive a 10 per cent royalty on gross revenue
of products sold by the Company within the scope of the issued patent.   

**Change of Registered Office**

The Company has moved its registered office address to East Castle House, 27/28 
Eastcastle Street, London, W1W 8DH with immediate effect.

> **Antonio Russo, Co-CEO of Zoetic International, commented**, “The filing of the
> smokable non-provisional patent is yet another step in Zoetic’s journey to lead
> the industry in innovation and product development.  We believe there is a major
> shift in how tobacco users will make the transition from traditional tobacco products.
> We believe our first mover position will have substantial benefits as other competitors
> begin to enter the market.” 

> **Trevor Taylor, Co-CEO of Zoetic, commented**, “Although, our primary focus in
> the US has been on the Chill branded product lines, we believe it is important
> to continue to develop other cannabinoid related products that will serve other
> parts of the emerging market.  The combination of cannabinoids with other drug
> compositions may prove to be a pivotal breakthrough in the science of drug efficacy.”

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