(Alliance News) - Zoetic International PLC on Thursday said it expects to commence US supply of its CBD products in April and reported progress on work to ensure compliance with UK regulations concerning sales of CBD food products.
The cannabidiol and natural resources company said it expects the contract for the distribution of smokable products and chew pouches with the first of its US national distributors, to be signed and concluded in March. It also said it anticipates that supply of the products will commence in April.
Zoetic said it intends to initially supply around 500 new stores, setting retail prices in the sub-USD10 range while selling to distributors for half the price, targeting a 50% gross margin.
"During the past month, we have made good progress on finalising our first major contract to distribute Chill products in the US. The majority of the necessary agreements and logistics are in place and, once we complete testing of the outsourced manufacturing of our chew pouches, we are in a position to proceed," said Chief Executive Nick Tulloch.
The Scotland-based company noted the ruling of the UK Foods Standards Agency that only cannabidol food products where a valid novel food authorisation application has been submitted by March 31, 2020 will be allowed to remain for sale in the UK. Zoetic said that it anticipated the ruling and has already commenced work to ensure compliance with the new regulations, adding that it remains "confident" it products will be fully compliant before the deadline.
Zoetic also said it has launched a new website for the advertisement and sale of its feminised hemp seeds. The company is currently in talks with potential buyers and seed brokers in the US and Europe.
"Overall this has been another month of excellent progress as we build Zoetic into a company capable of generating revenue on a number of fronts," Tulloch said.
Zoetic shares were trading 2.4% higher at 9.57 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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