Zoetic International (ZOE) , the former oil and gas business turned CBD company released a positive trading update on Friday.
As the company continues its move towards the cannabidiol markets, it reported £1.15m in revenues for the first half of 2019, and a cash balance of £1 million.
Nick Tulloch, Chief Executive of Zoetic International, said: "The first half of this financial year saw a number of significant developments for the Company. From a standing start, we have established a vertically integrated CBD business with sales on both sides of the Atlantic and growing relationships with significant distribution partners.”
He added that: “For the remainder of the year we can look forward to advancing sales with our partners.”
Shares in Zoetic were trading 25% higher at 4.625p early Friday morning following the update
The company has a 33,000 square foot indoor growing facility in Colorado and anticipates first sales from feminised seeds in 2020.
Mr. Tulloch said he has “every reason to believe that we have the capability to become a trusted supplier of significant volumes of feminised seeds on a monthly basis.”
After the company’s decision to get out the natural resource business, it said it has been working to best realise value from its cannabinoid business.
Mr. Tulloch said: “We will not rush into any quick or ill-advised sale, but we will develop in the coming months a series of opportunities to realise cash from these assets and reinvest in enhancing our CBD business.”
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