(Alliance News) - Zoetic International PLC on Tuesday said it has raised GBP350,000 via a subscription for 8.8 million shares with a single investor at 3 pence per share.
Shares in Zoetic were up 15% at 8.34 pence in London at midday.
John Story, already a significant existing investor in the CBD and natural resources company, subscribed for the shares. Following the admission of subscription shares, Story will hold 9.9 million Zoetic shares or a 5.06% stake as well as GBP330,000 of convertible loan notes that can be converted to 5.5 million additional shares.
Zoetic will use the subscription funds mostly to finance its working capital needs due to additional recently announced US distribution contracts for its Chill brand products.
The company on Monday said it had signed a distribution agreement with partner BettermentRS to market tobacco-alternative Chill products to its network of outlets. Rollout of Chill brand has been delayed by pandemic, as many retail outlets closed on lockdown restrictions.
Co-Chief Executive Trevor Taylor said: "We are delighted that John has continued to show his confidence in the direction of travel that Zoetic is taking. The combination of the subscription and the transaction announced with the Schrader family... should ensure we have the working capital we need to roll out Chill as the US emerges from the Covid-19 lockdown. Having two such supportive key shareholders gives us great confidence for the future."
By Anna Farley; annafarley@alliancenews.com
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