Highlands Natural Resources' new cannabidiol business lands first retail sale agreement

Highlands Natural Resources PLC (LON:HNR) said its newly established cannabidiol (CBD) subsidiary, Zoetic Organics, has landed its first retail distribution and sale agreement.

Zoetic Organics has signed an initial two-year distribution and sale deal with Schrader Oil and Ox Distributing, which manages convenience stores and petrol stations across the US.

READ: Highlands Natural Resources to enter cannabidiol market in Colorado with new growing operation

Under the deal, Zoetic branded pre-rolled CBD smokables, ready-rolls and CBD chew pouches will be distributed to and sold in 18 Schrader Oil convenience and gas stores.

The deal represents the first line of retail products that Zoetics aims to launch this year.

“This is a significant development for Highlands as not only does it accelerate our predicted revenues from Zoetic Organics ahead of our own first harvest but it also provides us with an early opportunity to establish the Zoetic brand,” said Highlands chairman Robert Price.

Zoetic has four different natural flavoured and CBD infused herbal smokables, ready-rolls and CBD chew pouches.

The products will be made using supplies from an organic hemp farmer in Colorado until Zoetic finishes growing its own crop this summer.

Zoetic has secured the lease for a 33,000 square foot facility in Colorado, which has the capacity for 40,000 hemp plants each year.

The company aims to deliver its first batch of CBD smokables and ready-rolls into Schrader stores by the beginning of May followed by its CBD chew pouches by June.

Zoetic said it expects the sale agreement to mark the first step of its plan to become a supplier of a variety of CBD products in Colorado, across the US and internationally.

Story by ProactiveInvestors