Zoetic International PLC signs financing agreement with US investment manager
The CBD Group said the deal with LDA Capital would allow it to access up to £ 35million over a 36-month period, which it says will provide it with the capital it needs to pursue new business opportunities. distribution in the United States and Europe for its Chill product line.
The cannabidiol (CBD) group said the deal would allow it to access up to £ 35million over a 36-month period as well as retain the ability to control the timing and amount of capital withdrawals, which, according to him, will guarantee operational flexibility for the group. as it sought to further expand its international presence.
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The company has agreed to draw down £ 15million in the first 12 months of the facility, adding that the fundraising will be facilitated by the issuance of shares for subscription by LDA Capital. The group has also agreed to pay a 2% option premium on the facility totaling £ 0.7million, which is expected to be paid from the proceeds of the minimum drawdown of £ 15million.
Zoetic also said the deal will provide it with the capital to pursue new distribution opportunities in the United States and Europe for its Chill product line, including through investments in product inventory and marketing campaigns. , while accelerating the formation of new distribution channels.
The company added that funds will also be allocated to securing critical elements of the supply chain, attracting new executive talent and supporting continued international expansion.
“We are pleased to announce LDA Capital as a financial partner and are delighted to continue Zoetic’s growth journey with the benefit of a significant financing facility. Zoetic is in a phase of transition, both in terms of growth and basic investor profile, and LDA has provided the group with capital at an attractive cost which is sure to allow a smooth transition to the next phase. . The optionality retained in this agreement is a tremendous asset for the company and its shareholders, and it gives us the operational and financial flexibility to generate new growth opportunities while guaranteeing accretion for all stakeholders while limiting the amount of dilution, ”Zoetic CFO Paul Ferguson said in a statement.
“We are delighted to have found an ideal financial partner in LDA Capital, not least because it brings very important strategic advantages to the table. LDA has executed many international transactions and we anticipate significant synergies from this partnership”, added Zoetic’s co-chef. executive Trevor Taylor.
Zoetic shares were down 2% to 100p in the first trades on Tuesday.