RNS15 May 2020 08:16
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Article 7 under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
Zoetic International plc
("Zoetic" or the "Company")
15 May 2020
Trading Update
Appointment of Company Secretary
Zoetic International plc (LSE: ZOE), the London-listed vertically integrated CBD and natural resources company, is pleased to provide the following update on its operations.
Highlights
· Outline agreement reached on a further US multi-State distribution contract for Chill
· Significant further cost reductions achieved within the Oil & Gas Division and progress towards exit from the industry
· Testing commenced with another US University on high quality seeds
· International seed distribution agreement discussions are underway
· Zoetic brand short-listed for Top Sante Skincare awards
Current Trading and Prospects
The period since the end of the last financial year, on 31 March 2020, has seen pivotal changes for the Company in its progress away from its origins in the oil & gas sector and towards its future as a vertically-integrated CBD and hemp business. The new board of directors (the "Board") announced on 29 April 2020 has continued and accelerated the progress already made on this path.
The strategic partnership with the Schrader Family continues to develop successfully, combining their position as both the Company's largest shareholder (13.32%) and through its US-wide convenience store network of distribution businesses, Ox Distributing LLC, the Company's key marketing channel for the Chill brand within the USA. This has resulted in outline terms being agreed on a new multi-State distribution agreement to place Chill brand products in US convenience stores, which is expected to be signed this quarter.
The Board can also confirm that the Schrader Family has made the payment due on 30 April 2020 for the loan note announced on 26 March 2020 and the Board is confident the Schrader family will continue to be supportive and instrumental in the growth of the Company.
While the current Covid-19 pandemic is significantly limiting footfall in convenience stores in many US States, the Board believes the distribution agreements already agreed and those close to signing will lead to a substantial increase in sales of Chill brand products within the USA. The brand's focus on the tobacco-replacement market is expected by the Board to be especially attractive as health concerns are exacerbated by the current pandemic. The Board has commenced negotiations for distribution of the Chill brand in two overseas markets, in addition to others within the USA, and hopes to conclude further signifi