RE: Yesterday news....2 Jul 2019 10:07
Reposting HD's excellent response from yesterday.....A great buy this morning!
Usual suspects jump on a few words from one line and make out the entire project is rubbish, when in fact it is clearly only not covered expenses during the workover, not during the entire period the wells have been online and is expected still to provide significant revenues afterwards.
Furthermore, they continue to ignore any other positive aspect of the RNS, and items from previous ones:
Namely:
At the beginning of June £100,000 ($127,000) at 1.27 FX was raised by a 10p subscription by the Schrader family (a distributor of our products) which would help offset this temporary drop in expected revenue as the wells were worked on for longer than expected. Note: They would have expected them to be worked on.
5,000,000 warrants were converted in June releasing £425,000 or $539,750 for Highlands (at FX 1.27)
Admittedly the 5,000,000 warrants would have been expected to be received by the end of the month, but still, it was money into the company nonetheless.
Initial revenues will now (albeit small initially) be received as the first batch of smokeable products have been distributed.
And then, of course, the huge news:
Zoetic's future expansion into sales into the UK and then Europe, something that was muted as a future revenue earner, and something Nick Tulloch had said would hope to achieve in the UK **by the end of the year**
And here we are in July with the Zoetic.com website shortly about to offer these products to buyers in the UK, and also in talks with a specialist distributor in the UK to sell into UK stores. Remember, this is Zoetic, this is the high-end, high-value product line of CBD products like the tinctures etc, and then can be followed by creams and lotions and the like.
On top of that, despite all the knocking from posters of us flogging CBD from a shed to 18 garages, we have also got a further distribution outlet with LeafyQuick who can provide same-day delivery of our Zoetic and Chill products in Chicago, and again ship nationally in the US.
Personally, my thoughts are the oil wells are a great source of revenue, but it is only a short matter of time before Zoetics sales can pick up especially with the UK market also being tapped. Of course, there is no guarantee these will fly off the shelves, but the high-end good quality stuff is being lapped up in general, and there is not enough supply to meet the demand, so they should do well.
And then there is the actual harvest of the first batch of crops themselves, which will also provide an additional source of income when completed, seeds, of course, will have $ received later in the financial year, but plant mass from indoor and of course the outdoor harvest will reap large rewards.
This is a huge RNS, the ED aspect is disappointing (temporarily) but the Zoetic progression is staggering.
Sign In
Follow the stocks
