(Alliance News) - Zoetic International PLC on Thursday said that the long-stop date of December 31 for completion of the revised agreement to sell its 75% stake in its re-fracking and well protection technology division DT Ultravert to Path Investments PLC has not been achieved.
The London-based company that sells tobacco-substitute CBD products, formerly known as Highlands Natural Resources PLC, said in May it was going to receive 15.0 million shares from natural resources-focused investor and drilling technology business Path as part of the deal, with Path to acquire Zoetic's nitrogen assets in Kansas, US.
The agreement was then revised in November, with Path to issue 30 million shares of 0.1 pence each to Zoetic, which would keep its nitrogen assets. Path would no longer be required to pay a royalty to Zoetic on DTU future revenues and will pay GBP42,000 plus VAT in cash to Zoetic on completion towards its professional and technical costs.
Zoetic said that despite not meeting the long-stop date, it remains "committed to its policy of exiting its legacy natural resources activities and the directors will actively investigate solutions in relation to its interest in DTU, including continuing discussions with Path, as well as its Kansas nitrogen and other natural resources assets."
Shares in Zoetic were down 6.8% at 64.33 pence in London on Thursday. Path shares were untraded.
By Zoe Wickens; zoewickens@alliancenews.com
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