6 Jul 2020 07:00
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
6 July 2020
Zoetic International plc
("Zoetic" or the "Company")
First International Distribution Contract
UK JV Terminated as UK Operations Bought Under Full Company Control
Highlights
● Executed an international distribution agreement covering the Czech Republic and Slovakia, the first for the Company's Chill brand.
● End of UK Joint Venture as the Company brings its UK operations under its full control.
Agreement reached with distributor in the Czech Republic and Slovakia
Zoetic is pleased to announce that an agreement has been reached with its first international distributor for its Chill brand of tobacco alternative CBD products (the "Agreement"). The Agreement will facilitate its entry into the Czech Republic and Slovakian markets, paving the way for further international expansion as the Company pursues its strategy to ensure Chill becomes a global brand.
In seeking out a distribution partner in this region, which the Company believes has significant potential, Zoetic has been extremely impressed by the distributor who have become an established player in the growing Eastern European tobacco alternative market. With an already deeply-rooted online presence and strong ties to the Czech Republic's leading tobacco network, they are well placed to take the Chill product range to market in this territory. In particular, the Agreement provide a clear roadmap for the distribution and sale of Chill products in filling stations and tobacco retailers across Slovakia and the Czech Republic.
This agreement marks the next chapter for the Chill brand as it continues to find a substantial audience on a worldwide level. Further discussions are ongoing with distributors in other territories and the Company looks forward to announcing further distribution agreements in due course.
Antonio Russo, Co-CEO of Zoetic, commented, "We could not be more pleased to have secured this further expansion of the Chill brand into the global market. The distributer has excellent connections and reach throughout the Eastern European region which will serve to truly enhance the potential of our products."
Conclusion of UK Joint Venture
As Zoetic continues to establish itself as a well-regarded CBD operator in the UK, the Company's Joint Venture (the "JV"), announced on 29 April 2020, with the Company's UK-based former CEO, Mr Nick Tulloch, has reached its natural conclusion, and has been mutually agreed that it should be terminated with immediate effect.
With the sustained expansion of Chill into foreign markets, the Company believes the Zoetic brand will begin to benefit from the synergy of combining both product distribution and executive decision making under the management of Co-CEOs Antonio Russo and Trevor Taylor.
The UK JV, covering Zoetic branded products, applied Mr Tulloch's operational expertise and knowledge of the UK landscape to assist the Company's management team during the transition of its commercial focus. This transitional period has now concluded and the Company would like to thank Mr Tulloch for his efforts and wish him all the best in his future endeavours.
Going forward, the Company's UK operations will remain uninterrupted with no change to the fulfilment of online sales of the 21 existing product lines in the Zoetic range. The Board is excited to commence the next stage of Zoetic's development in the UK market and is looking forward to growing the UK business in tandem with the expansion of the Company's other global operations.
Trevor Taylor, Co-CEO of Zoetic, commented, "We are thankful to Nick for his service to the Company, but we have mutually agreed that now is the right time for the Company's UK operations to be under full Zoetic control. We are enthusiastic to continue the growth of the Zoetic branded products in the UK and elsewhere."
Enquiries
Zoetic International plc c/o IFC Advisory
Trevor Taylor, Co-CEO
Allenby Capital Limited (Financial Adviser and Broker) +44 (0) 20 3328 5656
Nick Harriss
Nick Naylor
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe
Graham Herring
Florence Chandler