Highlands Natural Resources (HNR) announced that its wholly-owned subsidiary Zoetic Organics has signed its first retail distribution and sale agreement with a distributor in the US.
The agreement marks the beginning of on-site retail sales of its CBD products in the United States.
The distributor, Schrader Oil and Ox, collectively manages a wide network of convenience and gas stores as well as convenience store distribution services across the US.
Robert Price, Executive Chairman and CEO of Highlands, commented: "This is a significant development for Highlands as not only does it accelerate our predicted revenues from Zoetic Organics ahead of our own first harvest but it also provides us with an early opportunity to establish the Zoetic brand."
Shares were trading 10.79% higher at 9.5p a share following the news
Highlands Natural Resources established Zoetic Organics after seeing hydrogen from its rare naturally occuring gas operation in Kansas applied as a natural organic fertilizer at a cannabis operation in Colorado.
It saw the gas mixture increase plant size, height, root diameter and flower count by up to 30%, and raised £1.27 million in March to establish the subsidiary.
The agreement will see its branded pre-rolled CBD smokables, ready-rolls and CBD chew pouches initially distributed and sold in eighteen Schrader Oil convenience and gas stores, beginning in May.
The company told investors it has plans to supply a variety of CBD products across Colorado, and in time, across the US and internationally.
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