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Zoetic reports higher first half revenues as it continues transition to CBD

The company also said it would begin production of feminised cannabis seeds before the end of 2019

Zoetic International plc - Zoetic reports higher first half revenues as it continues transition to CBD

Zoetic International plc (LON:ZOE) reported higher revenues in its first half as the company continued its pivot towards the cannabidiol (CBD) markets.

In a trading update the firm, formerly known as Highlands Natural Resources, posted revenues of £1.15mln in the six months ended 30 September, up from £0.52mln a year ago, while also ending the period with £1mln in cash.

WATCH: Zoetic International 'building out its CBD sales channels' as momentum builds

Zoetic’s chief executive, Nick Tulloch, said the firm had undergone a number of “significant developments” over the period as it transitioned away from natural resources towards cannabis, saying that the company had now established CBD sales on both sides of the Atlantic with 67 US stores now stocking its products.

The company also said it would begin production of its first feminised seeds before the end of the year, with initial sales expected in the first quarter of 2020.

Feminised seeds produce female cannabis plants, which account for most of the world's sales of cannabis products.

“As we expand the techniques we have been developing, we have every reason to believe that we have the capability to become a trusted supplier of significant volumes of feminised seeds on a monthly basis”, Tulloch said.

Meanwhile, the company was currently aiming to develop a “series of opportunities” to sell its remaining natural resource assets in the coming months, with the proceeds of any sale to be reinvested back into the CBD business.

The upbeat outlook drove Zoetic's shares 8.8% higher to 4p in early trading on Friday.

Quick facts: Zoetic International PLC

Price: 6.55 GBX

LSE:ZOE
Market: LSE
Market Cap: £9.77 m
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