Member Info for BlackHopper

You really do not like being wrong D14mond do you?

Can't you just say "I was wrong about the need for a placing fundraise"?

It would be easy to say....

Clearly, seeds can then be stockpiled for the 2021 season and a much greater number could be available in another year’s time.
In tandem with this process, Zoetic have launched two brands, Zoetic and Chill, with Chill being first to market. Sales as reported have been very modest up to the end of September, but initial stocking was only of Chill products in a few stores (18) in June. Websites were set up for Chill and Zoetic but have not been live until very recently as payment providers are clearly posing problems to CBD only companies. Again, Nick was very candid with me about these issues, but we can seed that the number of stocking outlets in the US has risen to 67 and, more importantly, he has signed an agreement with a wholesale distributor. Mt Checkout is, I believe, much like Booker here in the UK and convenience store owners can buy their stock in bulk to sell on to the consumer form here. Promotion of our Chill brand, both chews and smokes, by an entity such as Mr Checkout could and hopefully will vastly expand our product reach (Google My Checkout, 55,000 clients!). Mark up for Chill brand products is significant with packs selling to $10 and the company receiving approximately half that. Nick earlier RNS’d the fact that he was building up stock of product to supply a new client and the recent RNS has backed up that decision.

Premium Zoetic tincture products have a huge profit margin but selling in volume will be a slower build. I’m not going to speculate about this but as customers interested in CBD oil try various products, only the ones that provide benefits will continue to sell. I believe our products will prove to be of the highest quality.

Massive ongoing speculation about the imminent need for another fundraising was proved to be totally misplaced by the statement of the company’s cash position. It saddens me to see the reprehensible behaviour of a few contributors on this board who have bleated on, day after day about the need for a fundraise with no evidence for such. Again, I asked Nick to clarify this and he has, adding that there will be no dragging liability carried over from sale of the Oil & Gas assets of HNR.

So, I think it is clear we have new kind of CEO as well as new company name. Zoetic have just harvested their 16 acres of outdoor crop and this will be available for sale soon, either directly in plant form or processed into CBD isolate. Considering Nick’s focus on Seed sales and Branded product I think the crop will be sold as it is and speculate it could be worth $1-1.5 million. However, he has not outlined this process yet and we will have to wait. This incoming revenue, allied with the balance as stated, clearly shows we are not going to run out of cash anytime soon and can continue to manufacture high margin product in line with company strategy.

Finally, our shares will soon be listed on the OTC markets in the US. This opens us up to a whole new raft of US investors who want to get into the CBD

The Present….

Nick Tulloch joined the firm earlier in 2019 at finance director, having worked at Cantor Fitzgerald. He was very aware of HNR and its operations and so was a great choice for RP. I can only assume that over the summer he became increasingly aware that the range of operations HNR was involved in were not sustainable for such a small company and that radical changes needed to take place before a fully fledged financial meltdown took place.

It is my belief that Nick could see that the new Zoetic business could be an excellent money earner but would be dragged down by the other assets HNR held. I am sure a moment of truth session took place with RP and we saw the results in the 4th September RNS.

I was totally shocked by this and considered dumping stock, but I was very busy that day and in no place to follow the trading and by the time the dust had settled the price was so low that it seemed pointless anyway. I waited a few days and then emailed Mr Tulloch directly, expressing my concerns and being very candid about my fears for my investment. His response was a breath of fresh air in comparison with other emails I had received previously. He reassured me that he would henceforth be giving much greater detail in company updates so that shareholders could make informed decisions about their holdings and the recent RNS of October 4th backs that up.

I have long thought that the multi-facetted approach to revenue generation planed for Zoetic is an excellent one. The main driver is the seed sales strategy based out of the indoor growing facility in De Beque, Colorado. Nick has now clarified the growing process with 4 bays of 2,500 plants each allowing 1 bay to be harvested each month. Critically, female plants can be cloned and grown in an environment free of any male pollen so that seeds produced are all female. Only the female plants have value and so seeds that can be sold as ‘fem’ or ‘feminized’ with low THC but high CBD characteristics are very valuable. With the volume of hemp plants being grown in the US increasing massively, Zoetics seeds will be in strong demand and sale prices of a $1 and more are possible.

If you have watched the Vox Markets and Proactive Investor podcasts you will see that he is very candid about the fact that ZOE will not be receiving all that revenue, as a seed broker or brokers will be involved, but if we produce 1 million seeds per bay and receive 50c per seed then 4 months production (December-March) would generate approximately $2 million dollars to Zoetic. I am not clear as to whether a bay might be harvested by the end of November or if a bay harvested in April will still be in time for the seed sales season in the spring. I suspect it might be. Maybe 4 million seeds at 50c is too conservative. Maybe we can sell 6 million seeds. Or maybe it will only be 3. Maybe we will get 60c per seed etc etc. I am going to estimate a revenue of $2 million from this area of the business for now…

cont

The past….

So, I have not posted a longer post since news of Robert Price’s departure. I certainly did not expect this. It was a shock, both in itself and it’s effect on the SP. I have waited until Nick Tulloch, the new CEO, posted his half-year update to give my thoughts.

There are a number of notable posters on this board who are and have been very negative on HNR in the past and are now similarly so with regard to ZOE. The most prevalent of these is D14mond who now posts as burning spear. I’m not sure why. He has and had a long term issue with Mr Price and moved from being very positive about the company to being very negative. In light of events in early September you cold say he was correct about the projects HNR ran in terms of them being viable overall and in the prospect of the company making profit from them. The news of RP’s departure and that the company would change to a purely CBD related venture under the name Zoetic International has led to the current low share price circa 4p. I and many other long term shareholders in HNR are now in the unenviable position of having very significant paper losses.

I was initially drawn to HNR for its Montana Helios project and always assumed it would partner with another entity to realise this asset. The project looked way to big for such a small company but the need for Helium seemed to me to be a key reason for a partner company to get involved. Share price oscillations at the time of announcement of gas compositions from the Montana well were dramatic.

However, as all who have followed this company’s fortunes will know, although exiting discoveries were made (Kansas) and well executed wells were drilled (East Denver), the company was not able to really generate the kid of revenue required to ramp up its business and in March 2019 Zoetic appeared out of the blue with a placing at 8.5p. The CBD business was not something we had ever had mentioned to us before but gas from Kansas , used as a plant grown enhancer, was cited as a key driver to get HNR into hemp cultivation, subsequent to relaxation on hemp related regulations in the US farm bill 2018.

The company SP rose into the low teens in May 2019 only to fall back toward the 8.5p placing price subsequently and then revelations that the promise that East Denver could cover all company operating costs proved to be ‘not correct’. This led to further SP falls culminating in the company being changed to ZOE and Robert Price stepping down as CEO. The SP dropped from 7p to 5p and although new CEO Nick Tulloch had promised to fully update the market at the beginning of October, even being a couple of days over oct 1 led to the most recent lows of 3.3p…… to be continued….

MCB and Asaiaka, I was out all yesterday and did not post much with all the noise. i am going to write a couple of updates but it is my understanding that the OTC listing is in process but the intention is to be 'fully prepared' for that listing and not to rush it. Infact, planning, preparation and doing the best things when ready are exactly what nick Tulloch is about and I think you will find the ongoing management style very different from that before under HNR/Robert Price.

So I do not know when the listing will be, obviously. if I had to guess, in the next 2-3 weeks but it is just a guess. It could happen next week for all i know, or in the fist week of November. It will happen though, otherwise I believe NT would say so.

Do prepare yourself for this message to be criticized from certain quarters and take a note of who those posters are. It will confirm what they are about and will firm up you knowledge of who to ignore in the future. Best, BH

Burny wurny obviously

C’mon....you’ll feel better once you’ve got it off your chest

Say’I was lying about the placing’

There, easy

Oh burnt wit you D14mond......where are you ?

Are you under the bed.......or behind the door...?

Are you in the cupboard......

Come and be a big chap now and offer apologies for your placing lies here and on Twitter

C’mon, there’s a good boy.

You cannot hid in you ‘moral pantry’ all day.....

IANS, it is exciting! I also note,as a sign of his strategic nous, he is pulling back from big outdoor to concentrate on the profit bearing areas of seed and product retail. Clever. Beginning and end of the chain. Leave the middle to others....

JJ...you first, Mr Checkout....

AI87... general moral apology regarding NT and the business

D14mond....million’s and millions of apologies required....but I am not expect one as you are no doubt busy daubing inside you ‘moral pantry’

That RNS reflects what I have been saying these last few weeks. The cash balance DOES NOT include the outdoor crop sale revenue. Mull it over. Chill products distributed wide via Mr Checkout should earn some serious dollars. Add that to seed and Zoetic sales and see what the profit will be at the year end in 6 months time......

Happy face

150mg CBD per pack

So 1 outdoor plant would produce enough to isolate to make nearly 200 packs....

How much do they sell for again??

Imagine the mark up..... mmmm

Nice!!

What price did you sell out at A187?

What price did you sell out at JJ?

Oh and stop banging on about seed sales contracts .....it makes you look stupid. Or maybe that is the idea?

What price did you fully sell out at?

How many flies have you ended today AI?

JJ you are wasting your time mate!

Better spent on your carefully composed communication to the FCA

Off you trot

Naughty naughty! Making silly claims now.

Hemp plants can be sold, as plants, as I’m sure you know.

Or maybe you don’t know very much.

Hey JJ, how’s your complaint to the FCA professing? Would love to hear how you are getting along....

See, you can actually post decent post D14mond. Well done. Less of the repetitive ironic nonsense and more rational stuff please ( and tell your numbskull mates to go back to crushing flies in their sheds ...AI)

They are good points that need addressing and I’m sure NT will be doing his best. His intention is to deliver much more information to shareholders going forward . However, he has been st the helm less than a month so don’t expect everything a once.

You have failed to mention the impending seed production and sale which will be addressed and you of course, have failed to disclose the fact that sale of the outdoor crop which is being harvested now can be used to cover near term cash needs so no placing is required.

Naughty of you to miss those off D. But they don’t suit your agenda. Hi hum.