Highlands Natural Resources (LON:HNR) today announced that Nick Tulloch has been appointed CEO of the company having served as CFO since early 2019.
Nick Tulloch will be replacing Robert Price who will be leaving the company to make way for Mr Tulloch to pursue Highlands’ CBD business.
Nick Tulloch, new Chief Executive Officer of Highlands, said:
“I have known Robert for over four years and, during that time, he has become a good friend and a supportive colleague. As the founder and leader of the Company since IPO, he has been instrumental in bringing the Company to where it is today and he leaves the Company with the opportunity to become a leading player in the rapidly developing CBD industry. “
UK Investor Magazine met with Nick Tulloch before the announcement of his appointment as CEO, to discuss the groups push into the CBD industry.
The group has transitioned from a pure oil and gas company to one who now seeks growth predominantly in the CBD and cannabis sector.
Highlands have targeted the CBD business with a premium brand, Zoetic, which having launched just three months ago is now selling in the both the UK and US.
Having identified differing consumer tastes in the United States and UK, branding for Zoetic has been adapted for each market.
Not only has Highlands created different Zoetic branding for the two markets, it is also employing varied distribution models.
In the United States Zoetics is sold primarily in Colorado through a distribution partner that operates convenience stores typically attached petrol stations.
This approach is very different to the current approach in the UK which has initially been channelled through social media and digital means.
Mr Tulloch says this may develop to wholesale operations in the future but he is conscious of preserving the premium appeal of the brand and said he would be very reluctant to employ one of the major UK supplement stores as a distribution channel due to their overuse of sales and discounting.
While the wholesaling Zoetic branded is not yet currently underway, Highlands have secured a two-year agreement to provide CBD to Cellulac plc for conversion to medical grade CBD. Cellulac is 9.35% owned by Integumen plc.
When commenting on the CBD and cannabis product regulatory environment in the UK, Tulloch says in looks forwards to greater regulation and standardisation through the industry as this will help boost the Zoetic brand and remove some of the more questionable suppliers currently operating.
Tulloch highlighted Highlands have intentionally forged an over-compliant approach to the market in preparation for greater regulations and touched on the organic nature of the Zoetic products.
Highlands have recently raised £354,000 from high net worth investors by way of a placing which Tulloch says will be allocated to the marketing of the brand.
Despite the focus on CBD and Zoetic, CEO Tulloch does say the legacy oil and gas business could become potentially very valuable should oil prices spike significantly, however today’s announcement said they would seek to close the oil business failing the opportunity for an orderly sale of the business.