Zoetic International – CBD Hemp Stock Investing
Zoetic International (formerly Highlands Natural Resources) is a vertically integrated CBD company operating out of Colorado, USA but is also listed on the London Stock Exchange. They grow, produce hemp seeds, and CBD products sold online and in a few retail locations.
Recommendation: See Below
Zoetic, a vertically integrated CBD company, is focused on diversifying its operations to retail CBD products from its natural resources business. Zoetic aims to achieve higher margins with a focus on manufacturing and retail by developing higher quality feminized hemp seeds. Zoetic is also focused on expanding its current range from CBD oils and softgels to beauty and personal care products.
Market Cap: GBP 8.72 million
Enterprise Value: GPB 7.65 million
# of employees: 11
Secondary: USA, UK
Subsidiaries: Zoetic is a subsidiary of Highlands Natural Resources (HNR)
Current production: NA
Future production: Indoor growing facility of 33,000 square feet in DeBeque, Colorado. Fully operational in 2020. Planted hemp on 16 acres in Palisade, Colorado
Direct sales: Planning to sell online through zoetic.uk.com in the UK and thechillway.com in the US
Store networks: NA
Supply Agreements: Signed a distribution partnership agreement with Mr. Checkout in the US
to use the services of their 15 distributors on a trial basis.
Vertically integrated: Yes
Horizontally diversified: No
Outstanding shares (diluted): 118.2 mil
Revenue last quarter: £1.1 mil
CEO: Nick Tulloch
CFO: Trevor Taylor
Nick Tulloch, CEO of Zoetic, has over 20 years of corporate brokering and financial advisory experience in the financial sector working with investment banks and stockbrokers. Trevor Taylor, Chief Strategy Officer of Zoetic, has experience running a recreational cannabis company in the US as the Chief Executive Officer.
Zoetic is focused on promoting its brand as a specialty premium CBD brand in the US and UK by offering topicals, soft gel capsules, and tinctures. Zoetic aims to promote it’s Chill brand as a premium CBD brand specializing in alternative tobacco products in the form of vapes, smokables and chew pouches.
Current share price: US $0.09
Price to Sales: 4.8 (Tobacco industry Avg. = 5)
52 Week Low/High: $0.07 to $0.175
EV / Revenue: 4.88
Price to Book: 2.72
Zoetic’s parent company Highland National Resources raised £525,000 by issuing 6 million shares in 2019 to invest in operations of Zoetic. Highland National Resources further intends to divest from its natural resource business and reinvest money into its Zoetic CBD business.
The risks of investing in any cannabis company are currently high given the volatility of the market. The risks of investing in this company are very high given the competitiveness of the CBD market.
Zoetic, a vertically integrated CBD company, is focused on diversifying its operations to retail CBD products from its natural resources business. Zoetic aims to achieve higher margins by developing higher quality feminized hemp seeds and a line of CBD products.
Zoetic is also focused on expanding its current range of CBD oils and softgels to beauty and personal care products. Zoetic has an indoor growing facility of 33,000 square feet in DeBeque, Colorado which will be fully operational in 2020.
In 2019, Zoetic signed a distribution partnership agreement with Mr. Checkout in the US to use the services of their 15 distributors on a trial basis. They are also planning to sell their retail products online through the Zoetic website in UK and the chillway website in the US.
Zoetic will be offering topicals, soft gel capsules and tinctures under its Zoetic brand meanwhile vapes, smokables and chew pouches will be promoted under their Chill brand.
Will its stock price improve in the long term? Likely
Zoetic’s capacity to grow is good as they had cash and cash equivalents of £1.07 million during the third quarter of 2019 as compared to 1.99 million in the same period in 2018.
Zoetic reported revenue of £1.15 million for the first 6 months in 2019 of which the Natural Resources business contributed £1.12 million and the CBD business contributed only £36,000. As Zoetic intends to sell its Natural Resources (ol and gas) business, production of CBD will start coming in the first quarter of 2020 so there are chances of an increase in revenue and cash balance. This is a risk though as any delays will put them in a cash crunch.
Zoetic’s return on total asset (ROA) was -89.78 % which implies that it made a loss of $89.78 on every $100 spent on asset. This is very low as compared to the industry average however it will improve a lot as their CBD business start generating revenue.
One significant advantage is their London listing and location where they may be able to open the market with little competition and already have access to major liquidity. For these reasons, we think Zoetic, at or near its current price of $0.09 a share, can be a good investment opportunity.
About Cannin: Cannabis and Hemp Investment Experts
Market analysts expect the cannabis and hemp industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in cannabis and hemp stocks is now! Are you looking to buy stock in hemp companies or cannabis companies? Interested in emerging penny pot stock companies? Looking for the best Canadian pot company to invest in? Cannin is your trusted resource for information about Cannabis and Hemp stock investment opportunities. Our global team of experts evaluates emerging cannabis stock investing companies. We aggregate hundreds of hours of research and distill it down to make it easy for our investors to understand. We provide tips on the best cannabis and hemp stock investments for 2020. We provide the latest hemp investment news and analysis. Visit our site for cannabis investing news and featured companies, sign up for the free Cannin Chronicle or get a free trial of our smart cannabis and hemp stock algorithm to take the guesswork out of profiting from this exciting industry. Predict the price of cannabis and hemp stocks hours in advance with our machine learning algorithm. Is it too late to invest in hemp companies like Zoetic International? No! This is the perfect time.
Profit from the best Cannabis and Hemp stocks – we’ll show you how at cannin.com