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Zoetic Interntnl PLC - Subscription to raise £0.39 million

RNS Number : 6848C
Zoetic International PLC
12 February 2020
 

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.

 

 

12 February 2020

 

Zoetic International plc

("Zoetic" or the "Company")

 

Subscription to raise £0.39 million for the Company

 

Zoetic, the London listed vertically integrated CBD company, is pleased to announce that it has raised £387,000 through a subscription for £330,000 of convertible loan notes (the "Loan Notes") and 950,000 ordinary shares of 1 pence each ("Ordinary Shares") at a price of 6 pence per Ordinary Share (the "Subscription Shares") by an individual, Mr John Story (together, the "Subscription"). 

 

The proceeds of the Subscription will be applied primarily to accelerate the contract manufacturing of Zoetic's products in the US.  As the Company announced on 5 February 2020, subject to concluding a successful trial with the contract manufacturers in the coming weeks, Zoetic is targeting entering into supply contracts with two major distributors with the aim of supplying initial stores in their network by the Spring of 2020.

 

The Loan Notes are non-transferable, unsecured and convertible into new ordinary shares in Zoetic at a conversion price of 6 pence per Ordinary Share at any time during the Company's next financial year, being 1 April 2020 to 31 March 2021 when they mature.  Conversion may take place in part or in whole.  Prior to conversion or repayment, the Loan Notes carry an interest coupon of 7% per annum payable on 31 March and 30 September.  Interest is paid in cash and there is no right to convert accrued interest.

 

The Subscription Shares comprise the 950,000 shares currently held by the Company in treasury.  Following completion of the Subscription, the Subscription Shares will rank pari passu in all respects with the existing Ordinary Shares in issue, including the right to receive all dividends and other distributions declared, and the total number of Ordinary Shares in Zoetic with voting rights will be 149,110,034. This figure may be used by Zoetic shareholders as the denominator for calculations to determine if they have a notifiable interest in Zoetic under the Disclosure Guidance and Transparency Rules, or if such interest has changed.

 

Nick Tulloch, Chief Executive of Zoetic, said:

 

"I am delighted to welcome John Story as an investor in Zoetic. Taking his investment in shares and loan notes together, he is becoming one of our largest stakeholders and, in addition to his financial investment, he has already been willing to assist our business development by introducing us to certain retail stores in the UK.

 

"With Mr Story's support, we are able to accelerate the plans we outlined in our trading update last week.  We have an exciting opportunity with AATAC and New Age Beverage Corporation to significantly expand our sales of Chill products in the US.  The key to securing these contracts is to successfully outsource bulk manufacturing and the new funds give us the ability to progress our plans immediately."

 

**ENDS**

 

Enquiries

 

Zoetic International plc                                                                                               +44 (0) 1738 472 029

Nick Tulloch

 

Allenby Capital Limited (Financial Adviser and Broker)                                       +44 (0) 20 3328 5656

Nick Harriss

Nicholas Malins Smith

Nick Naylor

 

IFC Advisory Ltd (Financial PR and IR)                                                                      +44 (0) 20 3934 6630

Tim Metcalfe

Graham Herring

Florence Chandler


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Zoetic International PLC

Price: 9.35

Market: LSE
Market Cap: £17.37 m
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