Zoetic International PLC (LON:ZOE) has appointed Trevor Taylor and Antonio Russo as its co-chief executives as the group re-affirmed its commitment to exit natural resources and focus on its cannabidiol (CBD) business.
The company said Taylor and Russo, who previously served as its chief strategy officer and chief revenue officer respectively, were “instrumental” to the success of its US CBD business and that it was “an appropriate time to implement these changes to the management structure”.
Meanwhile, the company’s CEO Nick Tulloch and chairman Paul Mendell have both resigned, although Tulloch will continue to partner with Zoetic by leading a new joint venture in the UK.
"Paul and Nick have been extraordinarily influential members of the Zoetic team and I have the greatest respect for them. They have both offered to assist us in our transition arrangements and I have no doubt that we will benefit from their advice in the future. I am particularly delighted that Nick will be continuing to work alongside us in our new joint venture in the UK and Europe. I can think of no better person to lead this core part of our strategy”, Taylor said in a statement.
Loans approved
Meanwhile, in a trading update, Zoetic said it had received approval for loans from the US government totalling US$290,000 and expected to receive the funds this week. The company has also received a UK government grant of £10,000.
The firm said despite the global slowdown caused by the coronavirus pandemic it continued to receive enquiries from well-known distributors and retail chains for its products and had “a high level of confidence in the popularity and appeal” of its brands.
Zoetic added that it is continuing to develop sales channels for its feminised hemp seeds, and although the market had slowed during the pandemic it had broadened its testing data on the seeds and was “seeking to implement innovative marketing strategies.
The group also said it has implemented a number of measures to reduce costs at its indoor growing facility in Colorado.
“It is clear that Zoetic has an inventory of products and brands whose appeal seems capable of surpassing the economic downturn, but the Company remains under no illusions as to how challenging it may be to operate its business. Accordingly, Zoetic continues to adopt a set of exceptional operational measures to significantly reduce its costs and navigate through these unprecedented times”, the company said.