2nd Sep 2020 14:26
Zoetic International PLC - London-based CBD company - Inks agreement to sell its remaining interest in its oil & gas assets in Colorada to True Oil LLC for USD376,000. States the sale of the assets, combined with the sale of the Kansas assets and the wind-down of the Montana holdings marks its exit from the oil & gas business. Notes total estimated annual savings from closing its natural resources office is expected to be USD1 million.
Said however that while the sale of Colorado assets will be for USD376,000, the company has secured a USD276,574 loan from ANB Bank. After settling the loan, paying historic amounts due to True Oil as the operator of the assets and the reassignment and repayment of existing bonding arrangements on the assets, the final proceeds due are expected to be less than USD20,000.
Separately, Zoetic adds it is in final negotiations of an international distribution contract.
"We are pleased to have agreed the sale of our East Denver assets, which marks the culmination of over a year's effort in transitioning from the company's origins in the US oil & gas business towards our fast developing CBD business. Making a strategic exit from the company's legacy operations has refocused our efforts, leaving us with the bandwidth and resources to maximize the potential of our CBD activities," said co-Chief Executive Trevor Taylor.
Current stock price: 17.01 pence
Year-to-date change: up sharply from 5.55p
By Ife Taiwo; [email protected]
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