Zoetic PLC (LON:ZOE) shares rose on Wednesday after the firm said it has raised £387,000 from a private individual who will become one of the CBD specialist’s major investors.
John Story is acquiring £330,000-worth of convertible loan notes and 950,000 shares at 6p each.
The funds will be used to accelerate the contract manufacturing of products in the US where it has inked deals with AATAC, which owns convenience stores, and New Age Beverages Corporation, a NASDAQ-listed distributor of health products.
Zoetic chief executive Nick Tulloch said: "I am delighted to welcome John Story as an investor in Zoetic.
“Taking his investment in shares and loan notes together, he is becoming one of our largest stakeholders and, in addition to his financial investment, he has already been willing to assist our business development by introducing us to certain retail stores in the UK.
"With Mr Story's support, we are able to accelerate the plans we outlined in our trading update last week. We have an exciting opportunity with AATAC and New Age Beverage Corporation to significantly expand our sales of Chill products in the US.
“The key to securing these contracts is to successfully outsource bulk manufacturing and the new funds give us the ability to progress our plans immediately," Tulloch added.
In afternoon trading, Zoetic shares were 7% higher at 7.60p.
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