New terms have been agreed to allow the transaction to complete and improve long term value, the group said
() has said it is expecting the completion of the divestment of the company’s legacy oil and gas interest, DT Ultravert, during the next week.
The CBD-focused firm also noted a change in deal terms which both advances the transaction to completion and in the longer-term offers improved value to Zoetic.
It has agreed with the acquirer, Path Investments, that Zoetic will receive a higher royalty over future production - increased to 6% from 5% - and it will accept a higher allocation of share warrants, to a total of 30mln. Meanwhile, Path will cover Zoetic’s professional and technical costs with cash.
“The company has agreed to the variation in the terms of the transaction, which remain an important element in Zoetic's strategy to exit from its historic natural resources business and transition to a focused CBD and hemp business,” Zoetic said in a statement.
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