(Alliance News) - Zoetic International PLC on Wednesday said it has raised GBP387,000 after an investor subscribed for GBP330,000 worth of loan notes and 950,000 shares in the cannabidiol and natural resources company.
Zoetic said the loan notes, subscribed by an investor named John Story, are convertible at a price of 6.00 pence per share between April 1 and March 31, 2021. They carry a 7% annual interest rate.
The 950,000 subscription shares were also priced at 6.00p each and they represent roughly 0.6% of
Zoetic's share capital.
Shares in the company were 5.9% higher at 7.52p each in London on Wednesday morning.
Zoetic said: "The proceeds of the subscription will be applied primarily to accelerate the contract manufacturing of Zoetic's products in the US.
"Zoetic is targeting entering into supply contracts with two major distributors with the aim of supplying initial stores in their network by the spring of 2020."
Chief Executive Nick Tulloch said: "I am delighted to welcome John Story as an investor in Zoetic. Taking his investment in shares and loan notes together, he is becoming one of our largest stakeholders and, in addition to his financial investment, he has already been willing to assist our business development by introducing us to certain retail stores in the UK."
By Eric Cunha; ericcunha@alliancenews.com
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