10 Sep 2020 07:30
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")
Second International Distribution Contract Signed
Zoetic International plc (LSE: ZOE), the London-listed vertically integrated CBD company, is pleased to announce that it has signed its second international distribution contract, as well as continued progress with its core CBD business.
Highlights
● Executed a second international distribution agreement covering the distribution of the Company's Chill brand of tobacco alternative CBD products in over 15 markets across Europe
● Additional stocks of Chill brand smokeable products secured following significant demand
Agreement reached with major European distributor
Further to the announcement on 2 September 2020 that Zoetic was in final negotiations of an international distribution contract, the Company is pleased to announce that an agreement has been reached with a major new international distributor for its Chill brand of tobacco alternative CBD products (the "Agreement"). The Agreement will see the Company's premium CBD offering reach consumers in over 15 markets across the European Union, with thousands of stores making preparations to stock the Chill range. In a promising development, this physical footprint will be complemented by an established eCommerce presence which saw substantial revenue generated from vaping products alone during the last financial period.
The Agreement follows directly from the announcement that the Company had signed its first international distribution contract for the Chill range of products on 6 July 2020, illustrating that there is extensive interest and demand for the Company's products on a multinational level. The Company continues to identify and pursue new opportunities globally and is keen to sustain the rapid rate of growth that it has enjoyed so far.
Trevor Taylor, Co-CEO of Zoetic, commented, "We are delighted to have secured a further international distribution partner for the Chill brand. This agreement serves to affirm the quality and popularity that our products enjoy. Our new partner's 15 years of trading experience within the EU tobacco market will provide an excellent platform to enable the sale of our products to consumers across Europe."
Replenishment of stocks of Chill brand smokeable product range
Following significant demand for its Chill brand products, Zoetic is pleased to have restocked its range of tobacco alternative CBD smokes online. With hemp, calm and mint varieties now back in stock, the Company will focus on continuing to grow its market share of its top-quality, USDA certified organic products.
Via its Chill brand, the Company believes it has the market's only THC-free, nicotine-free, CBD smokes. The Company is very pleased with the demand for its products, which is matched by the continual growth in popularity of the CBD chewable pouch market and ever-expanding interest in the Company's range of mint smokes which are continuing to benefit from the regulation of tobacco-based menthol cigarettes, which are now banned in Brazil, Canada, Ethiopia, Turkey, Moldova, the European Union and the United Kingdom.
The Company expects to launch with the US distributors over the next few months whilst the groundwork and logistics for the international distributors is finalised. The Company hopes to have sales in non-US markets for the Chill brand before the end of 2020.
Antonio Russo, Co-CEO of Zoetic, commented, "The depletion of our Chill brand stocks stands testament to the high regard in which our products are held. We are extremely happy to be returning Chill brand smokes to the pockets of consumers across our core US market and will continue to lead the way in the development and distribution of quality CBD products."
Trevor Taylor, Co-CEO of Zoetic, commented, "We knew our smokable line was going to be a big hit and are pleased to get our inventories built up ahead of the rollout of our larger retail launch, both in the US and internationally."
ENDS
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 (Corporate Finance)
Guy McDougall (Equity Sales)
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe
Graham Herring
Florence Chandler