Must read an additional £6 per share !12 Mar 2021 10:31
From research, I understand that Zoetic's (Zoe) CBD "Chill brands" are now selling in Smokers Friendly 852 stores
Normally a standard convenience store would sell 7-10 packs of "Chill" cigarettes and chews per day at a profit of $3.50 per pack so annual profit per store based on 7 packs per day would be $8,600
Smokers Friendly stores sell 10 x more product than these standard convenience store so they will sell 70 packs a day making $86,000 profit per store per year
Over the 852 stores this means annual profit to Zoetic of c$73 million once fully rolled out in a couple of years
If we assume a conservative multiple of after tax profits of 25, this means just these incremental sales are worth $1.5 billion of shareholder value
As Zoetic has 190 million shares in issue this alone should be worth roughly an additional £6 a share ($8) to the current share price !