Member Info for Vascular

originally the date was 31st March 2021
https://www.food.gov.uk/news-alerts/news/food-standards-agency-sets-deadline-for-the-cbd-industry-and-provides-safety-advice-to-consumers

Who are the main high street suppliers - Boots, Lloyds, Holland and Barrett

Are they the main three?

I imagine eventually Zoe could be sold in all independent chemists as well as other outlets.

He said " Investors should be pleasantly surprised" or something a long those lines.

just to add. This was published in June 19. The Harvest rollout was a lot more than 125 outlets a week.
"expected to begin arriving in stores across the country in the summer of 2019 and may expand to 30,000 locations by the end of the year."

30,000 outlets by end of year. I make that 5000 outlets per month !! which does sound a bit optimistic, compared to 125 per week / 500 pm / 3,000 in six months, i assumed for ZOE. Maybe i have misunderstood what the rate of rollout for rollout for AATAC involved!

Harvest, AATAC to Bring CBD Products to More Than 10,000 Stores
"The agreement includes Harvest’s Colors, CBx Essentials and Harvest-branded CBD product lines, which are expected to begin arriving in stores across the country in the summer of 2019 and may expand to 30,000 locations by the end of the year.

“This exclusive partnership enables a massive advance in distribution for Harvest-owned CBD brands and follows our strategic path of expanding the scale of our wholesale and retail distribution nationally,” said Harvest Chairman Jason Vedadi. “Demand for CBD is unprecedented and by delivering leading products in 10,000 accessible locations gives us an unparalleled reach to consumers.”

The AATAC is one of the largest trade associations for independent convenience and gas stations in the country, with 50,000 primary and affiliate members and a reach of almost 90,000 locations that control over 60% of the market."

With the reference to AATAC being very successful with a previous CBD product - I'm thinking that ZOE are following in the footsteps of Harvest.
https://cstoredecisions.com/2019/06/06/harvest-aatac-to-bring-cbd-products-to-more-than-10000-stores/

Zoetic International outline roadmap rollout of CBD products on both sides of the Atlantic

I know most members would have seen this, apologies. I haven't and maybe other new members - so here it is again!
https://www.youtube.com/watch?v=mF9SNpAXc9k&ab_channel=Proactive

Hi Pete,

Must admit that looking at it again, it looks like there are three separate deals going on here in the US.

The smokers chain, AATAC rollout and another one (19th November 20, which could be Mr Checkout or AATAC again. very confusing.

RNS: 24th February 21 " Rollout to " (Chilli) CBD products is now set to be stocked by one of the largest tobacco-focused retail chains in the US (the 'Retail Chain'),"

RNS: 15th Feb 2021
Pivotal distribution agreements in place
AATAC rollout has commenced with initial 10,000 stores committed during next phase.
Ox Distribution beta-store programme complete

RNS: 19th November 20 "Positive response to Chill products following commencement of US roll out with new distributor. Following previous announcements that Zoetic had secured a new US distribution agreement (the "Agreement"), the Company is happy to report that the initial roll out of its products is ahead of schedule and has been met with an overwhelmingly positive response. CBD products, has already seen distribution begin across 125 new US stores in the first week alone."

But is does look like, going forward we should be receiving revenue from the smokers chain, possibly Mr Checkout and and the AATAC rollout. I hope your correct. Thanks Vas

Maybe this is what you are referring to Pete.

https://www.proactiveinvestors.co.uk/companies/news/920789/zoetic-inks-new-distribution-agreement-for-chill-products-920789.html

The bit i can't find the article that states that they have completed this roll out!

It does say there are "4 deals" covering 6,000 outlets.
" In a trading update, Zoetic said the deal with BettermentRS brings the total number of active US distribution deals to four, covering over 6,000 retail outlets."
I cant find anywhere it states the 6,000 shops are live, so to speak.

Its becoming clear that one potential weakness is their restricted rollout of around of 125 outlets per week.

If you read this RNS ( 5th Feb 20) they already had 12000 outlets signed up for delivery pre covid lockdown, and even then they said that with 125 outlets per week / 500 per month being visited - it will take up to 2 years.
" Total stores represented by these two distributors are approximately 12,000. The Company's realistic objective is to supply around 500 new stores per month, subject to customer demand and manufacturing constraints, and so management estimate that it is likely to take up to two years for products to be rolled out across the entire network"
We now have another contract for a further 10,000 outlets with AATAC with similar delivery constraints.
https://www.lse.co.uk/rns/ZOE/trading-update-mu2fiqgc6h6hn1g.html

found this from 1st June 20 RNS
" Highlights



? Executed distribution agreement with a US multi-state provider.

? The Chill brand's total reach with fully executed distribution agreements now totals over 6,000 retail outlets.

? While COVID-19 has slowed the roll-out, the position is now looking more positive.

? Discussions with AATAC continue.



Multi-state distribution agreement



Chill, Zoetic's tobacco alternative brand, is pleased to announce that it has signed a distribution agreement with a new partner BettermentRS to market Chill products to their network of outlets (the "Agreement"). The Agreement is the latest development from the Company's strategic partnership with Ox Distributing LLC ("Ox"), who continues to be instrumental in advancing the Chill brand with successful direct store distributors ("DSD"). The Board strongly believes that DSD are critical for shelf placement and education of products to quickly capitalise on this multi-billion Dollar industry.

I'm not sure how far they got with this roll out.
https://www.lse.co.uk/rns/ZOE/new-distribution-agreement-and-trading-update-otj0hvr4zvakssn.html
Trading & Covid-19 Update



The Agreement brings the Company's total number of active distribution agreements in the USA to four, covering over 6,000 retail outlets. Zoetic is prepared to roll out the Chill brand at the rate of around 500 stores per month (as previously announced on 5 February 2020), however this roll out has been delayed by the COVID-19 pandemic, as many retail outlets have been closed or experienced greatly reduced foot traffic (as set out in the announcement of 20 March 2020).



However, it is now becoming clear that lockdown restrictions are being relaxed throughout the USA and the Board has been preparing diligently to ensure it is ready to capitalise on the opportunity. US states are gradually opening back up with plans that incorporate tiered phases. The Company anticipates having an early indication in the coming weeks of how the roll-out plan is progressing.

Hi Capability,

I can't find reference to the company completing "6000 outlets in four months". There is mention of trialing product in selected Beta stores, in earlier rns's. If you can post the link that would be brilliant.

Thanks in advance
Vas

Morning Billy,
No, just generalising / short cutting down to each outlet producing a very low £15 profit for Zoe per day. Smokes only, retail at $9.99, with say 50% to outlet ($5, could be 40%), = $5 dollar to ZOE. I don't know the costs to Zoe of each unit, so can't comment so I just assume that that each outlet sells at least enough units per day to give ZOE £15 profit a day.

i don't think it really matters what profit exactly per unit that Zoe get, ( as long as its reasonable) as long as they shift enough units per outlet, they MUST guarantee to give the shop its profit and also generate a good profit consistently from each outlet for themselves.
My guess work is probably miles out, could be $10 a pack, $3 to shop, = $7 dollars to Zoe, with $2 costs = $5 per unit profit to Zoe. ...

IMO that must be the minimum that the shop would expect from such a placement point. its just that with the product sitting at the till, which we all know is prime selling space. Then if Zoe can't reward the shop with at least $15 a day....they will go somewhere else, find someone who can.
I'm just trying to get my head around these numbers but yes, there will be costs.
Cheers Vas

Just thought i would add after reading up last night. I did not release that Chill brand is licensed to sell in many more types of outlets than most of its competitor's..including hair salons, bars, clubs, etc which was also mentioned by John Story in his interview when he said that the market opportunity for Chill products is 100s of times bigger than Fever Tree.
Even so, i think it best to keep the numbers conservative until we hear otherwise.

Morning Happy,
Many thanks for your guidance.
Using my figures.
Am i correct in thinking that as of this month we are on target of making £12 million pa, going forward with a Market cap of 196, million then presently today our PE ratio is just 16.

And by April next Easter 22 with similar Market Cap of 196 million and a projective revenue each month £3,500,750 per month which would provide £42,84000 PA profit we will be on a PE of just 4.5 !

With a very conservative revenue target of £12 million by April 22 ( PE 16) and then £42 million by April 23 ( PE 4.2) with ( no further growth in outlets or profit margins) then it looks like we should be on a much higher PE ratio than 20 but i do not have a clue how to work that out! Is it just a matter of comparing our prospective growth with similar company's.

The reality is as we all know is that at present we have no confirmed figures - so personally I am happy with the PE of 20 for the time being , especially as its seems ultra conservative.

If my first two years calculations turn out to be correct what would be a more aligned PE be for share in April 22 and again in 23?

"I've had a look at top CBD and Vape companies' PE ratios in the US and found PE ratios anywhere between 29 and 428."

That's quite a spread so if i was pushed to guess i would go with the low end for safety and say 30, which at least keeps us in the pack.

Cheers Vas

Hay Happy
If we assume the company will be selling out of 2,500 outlets very soon and they are selling and making say conservative £15 profit per outlet then the company will be over a £1 million profit each month very soon and increasing on a weekly basis of approx 125 outlets which would be 125 x £15 pd = £1,875 per day, which is £13,125 per week, which is another £52,500 added each month.

If we assume we have 2,500 outlets now and we add another 125 PW / 500 PM for next 12 months then next Easter we will have a total of 2,500 + 6000 outlets = 8500 outlets x £15 per day = £127,500 per day, £892500 per week, £3,500,750 per month which would provide £42,84000 PA profit .

I think £15 per day has to be the minimum sale per day for the outlets to continue to be interested in providing a prime till position. Many company's pay for this spot!

Here it goes (please check my maths)

So once making £1 million per month / £12 million PA then this should give a present share price of around £1.02. And £4.39. next Easter. Assuming no further growth in profit per day or in outlets on stream per month.

I'm pretty sure that you will only get tax relief on the fist 20K, the other £ 6,000 you will only pay tax if it rises, and goes over your personal CG limit. Ring them up...

"In the largest study of its kind, all half million UK Biobank participants will be invited to receive a self-test kit to find out if they have SARS-CoV-2 antibodies. Data from confirmatory tests that the antibodies are due to past infection (rather than vaccination) will be added to UK Biobank’s biomedical database and made available to the scientific research community. 2

https://www.ukbiobank.ac.uk/learn-more-about-uk-biobank/news/uk-biobank-to-gather-sars-cov-2-infection-data-on-its-500-000-participants

"The Company looks forward to reporting on distribution sales numbers once they are suitably established, and fully anticipates that retailers will place repeat orders in the coming months".

That was announced mid November 20. Approx. 18 weeks ago ( week off at Xmas). Could be at least 2,000 outlets on stream now. I will be particularly interested in the average quantity's of units delivered to outlets, and the frequency of the repeat orders and if at all possible the time to the shop shelf from date of repeat order.
https://www.investegate.co.uk/zoetic-interntnl-plc--zoe-/rns/trading-update/202011190700078016F/

It looks like Mr Checkout and AATAC are partners ! and both originally expressed an interest

" Cannabidiol company Zoetic said two distributors in the US were proposing to take on its Chill chewable and smokable products.

The company also said the launch of its cannabidiol gummies in the UK was generating significant interest.

AATAC, an association comprised of small buying groups and partner of Mr Checkout, had expressed an interest in distributing the Chill products to its convenience stores in Florida and the surrounding area.

Brands represented by AATAC included Gulf, BP, Sunoco, Circle K and Chevron.

Zoetic said it had also developed interest from New Age Beverages, a Nasdaq-listed distributor of natural products.

'Retail prices for both products will remain in the sub-$10 range and Zoetic will sell to the distributors at around half of that price,' the company said.,

'Depending on volumes, the company expects to earn around a 50% gross margin.'

Total stores represented by the two distributors were about 12,000.

'Subject to concluding a successful trial with the contract manufacturers in the coming weeks, Zoetic intends to enter into contracts with both distributors with the target of supplying initial stores by the Spring,' Zoetic said.

Was it this pilot that led to the announcement from AATAC that they will take on Chill products to all its outlets?
I wondering if Mr Checkout still involved?
https://www.stockmarketwire.com/article/6773559/Zoetic-eyes-US-distribution-deals-for-cannabidiol-chews-and-smokables.html

More here

https://uk.news.yahoo.com/covid-vaccine-passports-set-trialled-095303498.html