RE: Re: RNS29 Apr 2020 08:27
Zoetic International plc
("Zoetic" or the "Company")
Board and Strategy Changes, and Trading Update
Zoetic, the London listed vertically integrated CBD company, announces certain operational and organisational changes pursuant to a realignment in the strategic focus of the Company. Given the new strategic focus, Nick Tulloch and Paul Mendell, respectively Chief Executive Officer and Chairman of the Company, have resigned and that Trevor Taylor and Antonio Russo, respectively Chief Strategy Officer and Chief Revenue Officer of the Company, have been appointed as Directors and Co-CEOs.
Highlights
· Core CBD operations focused on Colorado - primarily the distribution of Chill branded products
· Trevor Taylor and Antonio Russo appointed Co-CEOs
· Nick Tulloch will continue to partner with Zoetic by leading a new joint venture in the UK
· Re-affirmation of the Company's commitment to exit the natural resources business with asset sale discussions well advanced
· Confirmation that Zoetic's applications for over US$290,000 of Covid-19 loans have been approved
Board and strategy changes
As investors will be aware from previous announcements, Zoetic's largest immediate opportunities are centred on the US distribution prospects of its Chill brand products. To date, the most substantial distribution and revenue agreements come from that brand. Trevor Taylor and Antonio Russo have been able, in a few short months, to create well-received Chill branded product lines. Their ability to quickly secure major distribution contracts for the brand has given the Company great hope for further success.
Given the importance of that business line and the operational focus of Zoetic, the Company considers it beneficial that its senior management should be located in Western Colorado. With travel restrictions as a result of Covid-19 likely to be in place for some time, and with international travel likely to be particularly restricted, the challenges for Mr Tulloch, both professionally and personally, of leading a business remotely are considerable.
The Company's geographical focus in Colorado has to date overshadowed its European operations, although in just nine months Zoetic has established itself as one of the highest profile CBD companies in the UK, with 21 product lines in the range and brand recognition to compete with the more long-standing participants in that market. However, the Company has fallen short of its aspirations to secure distribution of its products to major retailers in Europe. The Board believes that the prospects of this division will be enhanced by a more dedicated focus on local opportunities and so it has asked Mr Tulloch to work alongside Zoetic in a joint venture, effective immediately, to build its brands in Europe and continue grow this division. As a participant in the joint venture, Mr Tulloch will no longer be employed by Zoetic, but will be entitled to a share
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