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Zoetic Interntnl PLC - Subscription for Equity

RNS Number : 5997O
Zoetic International PLC
02 June 2020
 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Article 7 under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

 

Zoetic International plc

("Zoetic" or the "Company")

2 June 2020

Subscription for Equity

 

Zoetic International plc (LSE: ZOE), the London-listed vertically integrated CBD and natural resources company, is pleased to announce that it has raised £350,000 through a subscription for 8,750,000 ordinary shares of 1 pence each ("Ordinary Shares") at a price of 4 pence per Ordinary Share (the "Subscription Shares") by an individual, Mr John Story (the "Subscription"), an existing significant investor in the Company (see the announcement of 12 February 2020). 

 

The proceeds of the Subscription will be applied primarily to finance the working capital needs of the Company for the additional distribution contracts announced earlier today for its Chill brand products within the USA.  In particular, marketing expenditure, high-quality point of sale displays and the acceleration of manufacture as certain US states emerge from Covid-19 lockdown are a key focus for the use of funds from the Subscription.

 

The Subscription has been conducted utilising the Company's existing share authorities.  The Subscription Shares, when issued and fully paid, will rank pari passu in all respects with the existing Ordinary Shares. The Subscription is conditional, inter alia, on admission of the Subscription Shares to trading on the Main Market of the London Stock Exchange ("Admission") becoming effective. Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on the Main Market of the London Stock Exchange and the Standard Segment of the FCA Official List. It is expected that Admission will become effective and that dealings in the Placing Shares on the Main Market of the London Stock Exchange will commence on or around 16 June 2020.

 

Following Admission, Mr John Story will hold 9,850,000 Ordinary Shares, equivalent to 5.06 percent of the Company's issued Ordinary Shares as enlarged by the Subscription Shares, plus £330,000 of convertible loan notes that are convertible into 5,500,000 Ordinary Shares at any time up to 31 March 2021.

 

Trevor Taylor, Co-CEO of Zoetic, commented, "We are delighted that John has continued to show his confidence in the direction of travel that Zoetic is taking.  The combination of the Subscription and the transaction announced with the Schrader family on 26 March 2020, should ensure we have the working capital we need to roll out Chill as the USA emerges from the Covid-19 lockdown.  Having two such supportive key shareholders gives us great confidence for the future."

 

 

Total voting rights

 

On Admission, the Company will have 194,570,034 Ordinary Shares in issue, each with one voting right.  There are no shares held in treasury. Therefore, the Company's total number of Ordinary Shares and voting rights will be 194,570,034 and this figure may be used by shareholders from Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

 

**ENDS**

 

Enquiries

 

Zoetic International plc                                                                                                      c/o IFC Advisory

Trevor Taylor, Co-CEO

 

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

Nick Harriss

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: 14.25

Market: LSE
Market Cap: £27.73 m
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