Zoetic Interntnl PLC - COVID-19 Update
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.
("Zoetic" or the "Company")
In the short time since Zoetic published its operational update on
Reports indicate that convenience stores in the
Zoetic is taking prudent actions to manage these challenges. As previously reported, the management team has significantly reduced the Company's cost base in the past six months but, in the light of these new events, further action is now underway. Zoetic is adopting a set of exceptional operational measures to significantly reduce its costs and navigate through these unprecedented times. Regrettably, Zoetic has terminated the employment of six members of staff in the
Despite the ongoing problems in retail markets, the Company's distribution partners remain very supportive and, whilst this is no longer the right time to launch an extended distribution of Chill products in the
Furthermore, seed harvests have exceeded expectations and Zoetic now holds an inventory of 2,925,573 feminised hemp seeds. The focus of the team in the
Pending seed sales, the Company is taking action to maintain online retail sales. Discounts are being offered on both the Zoetic and Chill websites along with other periodic special offers. Activity on social media has been increased to expand customer reach and ensure the Company's products remain visible to prospective customers. In anticipation of fulfilling its distribution contracts, inventories of finished products are healthy and so the Board does not anticipate incurring any significant manufacturing costs or disruption to its supply chain for the time being.
The Board continues to plan for multiple scenarios and explore various ways to mitigate the impact of reduced demand for a potentially extended period of time. The Board also welcomes the initiatives that both the
"The breath-taking speed at which economies around the world have been impacted by the spread of Covid-19 is unprecedented and the impact is likely to be felt by every business.
"We are fortunate in that much work had already been undertaken to streamline the group and reduce our overheads but, in the extraordinary situation we find ourselves in, we have taken further action to remove all non-essential costs. We are taking this situation very seriously and I would caution our shareholders to be prepared for further challenges as the impact of Covid-19 and the economic downturn is felt. However, in our two CBD brands and feminised hemp seeds, we have created a business capable of generating substantial returns in the future and our task is to ensure we can deliver on that opportunity."
Nicholas Malins Smith
This information is provided by RNS, the news service of the
Quick facts: Zoetic International PLC
Market Cap: £16.73 m
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