Zoetic International PLC (LON:ZOE) said it has received a significant order under one of its existing contracts to roll out stock of its Chill range of tobacco substitute cannabidiol (CBD) products in a number of convenience stores across the US.
In a trading update ahead of its annual general meeting later today, the CBD firm said the order was the latest demonstration of the attraction of its Chill brand and “marks the “crossing the Rubicon” to full commercialisation” following what it said was “excellent consumer feedback” during the beta phase.
Zoetic also said the transaction to sell its legacy oil and gas interest, DT Ultravert, and its Kansas nitrogen assets to Path Investments PLC will not be able to be concluded within the long-stop date of October 31, 2020, included in the original asset purchase agreement and that it is currently considering its options and anticipates providing an update within the next two weeks.
"We are delighted with this order, which we view as the next important step in our progress towards being a substantial player in the American tobacco-replacement market", Zoetic co-chief executive Antonio Russo said in a statement.
"While this further delay to exiting our legacy natural resources business is frustrating, we are determined to ensure we get the best deal for our shareholders", added fellow co-CEO Trevor Taylor.