Zoetic surges as it raises £1.2mln through subscription from US distribution partner

Zoetic International PLC (LON:ZOE) has raised around £1.2mln through a share subscription from Ox Distributing, its primary distribution partner in the US.

The maker of cannabidiol (CBD) products said Ox has subscribed for around 23.7mln new shares at a price of 5p each, the same as Wednesdays closing price.

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Ox is owned by the Schrader family and forms part of the same group as the Schrader Oil convenience store chain, through which Zoetic sells its Chill products.

The share subscription was facilitated by the exercise of 23.75mln warrants at 5p each by former Zoetic chief executive Robert Price.

In a separate transaction, the company said a second warrant holder has exercised 60,000 warrants at 5p each.

The new shares are expected to be admitted to trading on 1 April, following which the Schrader family will hold a 14.31% stake in Zoetic.

"On behalf of the entire Zoetic team, I would like to thank Ox Distributing and the Schrader family for their support. In the midst of one of the greatest economic and health crises in memory, and when many investors are being highly cautious about entering into new commitments, the confidence they are showing in our ability to succeed in our business plan is truly flattering,” Zoetic CEO Nick TullRead More – Source