(Alliance News) - Zoetic International PLC on Friday said its first-half revenue more than doubled year-on-year and reported that it is in talks to sell its oil & gas assets.
The stock was trading 12% higher at 4.12 pence a share in London on Friday morning.
For the six months to September 30, the cannabidiol & natural resources firm said it expects revenue of GBP1.2 million, up sharply from GBP520,000, with distribution of its Zoetic and Chill cannabidiol products ramping up.
The company, which until last month was called Highlands Natural Resources PLC, said 67 stores in the US are now stocking the Zoetic and Chill products.
The company secured a distribution deal with Mr Checkout Distributors Inc.
Zoetic International said: "Mr Checkout manages 13 industry associations with over 150,000 independent retail members."
The company added that it aims to expand its Zoetic UK product lines to cosmetics before the end of the year.
The firm said first production of feminised hemp seeds, a strain of the cannabis plant, is likely to happen before the end of 2019, with initial sales in the first quarter of 2020.
Zoetic International shifted its focus to the cannabidiol market earlier this year. It first raised funds for its Zoetic Organics cannabidiol brand in March, expecting revenue from the product by mid-2019 and profitability before the end of the year.
Chief Executive Nick Tulloch said: "The first half of this financial year saw a number of significant developments for the company. From a standing start, we have established a vertically integrated cannabidiol business with sales on both sides of the Atlantic and growing relationships with significant distribution partners.
"Following our decision to exit natural resources, we have worked diligently to identify how best to realise the value in this side of our business. We will not rush into any quick or ill-advised sale, but we will develop in the coming months a series of opportunities to realise cash from these assets and reinvest in enhancing our cannabidiol business."
The company said it is now in discussions with several parties to sell its oil & gas assets.
By Eric Cunha; ericcunha@alliancenews.com
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