Zoetic International, the UK’s only LSE listed vertically integrated CBD company, has released a trading update which shows that the company is progressing well with building up its business. The company is moving ahead with marketing its CBD products in both the US and UK, with its first major distribution contract now in final form. Zoetic is also gearing up for seed sales ahead of the planting season through expanding its sales outlets. Going forward investors will be looking at the outcome of the seed sales and the pending wide-scale distribution of its “Chill” branded products.
In the US, Zoetic has been in discussions with a few national distributors and is now in a position where its first contract is in final form. Subject to successful trials with its contract manufacturing partners, management expects to be in a position to sign the contract and hopes to start supplying by April. It is expected that this will provide a useful boost in revenues. Zoetic is looking at increasing its profile in the US and as part of this it has been selected to appear on the “Behind the Scenes with Laurence Fishburne” programme.
In the UK, the company is working to make sure that its products meet the new requirements from the UK FSA (Food Standards Agency). The FSA has said that only CBD food products for which a “valid novel food authorisation application” has been submitted and approved may remain for sale after March 2021. Although this will require some additional work, Zoetic believes that it is better placed to meet these new standards than many of the other players and ultimately could leave the company in a healthier position in a less crowded environment.
Zoetic is increasing the profile of its feminised seed ahead of the key planting season. Although the group is still looking at dealing directly with seed brokers and large growers as its main market, Zoetic has launched a new website (zoeticgenetics.com) to advertise and market its seed to a wider audience. The growing season starts at the end of the first quarter and so this will prove to be a critical time for the ZOETIC INTERNATIONAL IS A RESEARCH CLIENT OF company to establish itself as a premium supplier.