REG - Chill Brands Group - AGM Statement

Chill BrandsAnnouncement

19/09/2023 07:00

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RNS Number : 8260M  Chill Brands Group PLC  19 September 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

19 September 2023

Chill Brands Group plc

("Chill Brands" or the "Company")

AGM Statement

 

Chill Brands Group, the consumer packaged-goods distribution company, will
hold its Annual General Meeting ("AGM") today at 3.00pm (BST). At the AGM the
Company's Chief Executive Officer, Callum Sommerton, will make the following
statement:

"We have once again reached our AGM after what has been an exciting
transitional year for the Company.

A highlight of the year has been the relaunch of the Chill.com website. The
platform has undergone a significant transformation and is evolving into a
marketplace for wellness products, natural supplements, and reduced harm
alternatives. Through this marketplace, we will offer a curated selection of
products that contribute to the overall well-being of our customers,
delivering the social and recreational benefits they enjoy while minimising
the potential harm associated with traditional substances like tobacco and
alcohol.

The marketplace strategy enables us to diversify our offering and explore new
opportunities without adopting the financial risk of product development or
inventory acquisition across multiple categories. We expect this to become a
sustained revenue centre as the roster of brands available to purchase expands
and the number of visitors grows.

We have also released our nicotine free vapour products in the US and, most
recently, in the UK. The 'Chill ZERO' range of products has received an
exceptionally warm reception from consumers and pilot stores, with encouraging
sell through rates that clearly demonstrate product market fit. This initial
success has opened the door to discussions with larger retailers and
distributors. I look forward to sharing further information on these
developments in the near future.

While I am keen to highlight the Company's positive outlook and progress over
the past 12 months, it would be remiss of me to not also take this opportunity
to address recent media speculation regarding the legal status of disposable
vape products in the UK.

Regardless of the manner in which it has been reported by some outlets, it is
important to emphasise that as of now, no formal ban on disposable vapes has
been proposed or enacted. While we acknowledge the importance of staying
attuned to coverage of regulation in our industry, it is crucial to understand
that any proposals related to product bans would be subject to a rigorous
formal consultation process.

As a Company we welcome measures to improve industry social responsibility and
reduce the prevalence of underage vaping. It is clearly important that steps
are taken to safeguard children and maximise the use of vape recycling schemes
that are already in place across many areas of the UK.

Despite the barrage of press interest over recent days, our discussions with
retailers remain ongoing and constructive. We value the strong partnerships we
are building and will work actively with others in the industry to navigate
any potential regulatory challenges to ensure the continued availability of
vaping products that have been instrumental in reducing the prevalence of
smoking. It remains a key priority of the Government to deliver on the target
of a smoke-free nation by 2030 and combustible tobacco products continue to
claim the lives of some 220 UK residents every day.

While media speculation can be unsettling, our shareholders can take comfort
that the business is agile and well-equipped to accommodate any regulatory
changes that come to pass. Independent of these developments, we have already
worked with our manufacturing partners to design discreet reusable vapour
devices. These rechargeable devices mirror the look and feel of a disposable
vape but accommodate pre-filled e-liquid cartridges that can be replaced at
will without the need to dispose of the battery unit.

We will release further information regarding these new devices in due course,
but can confirm that we intend to extend and diversify our range of vapour
products regardless of any regulatory changes. For now, our aggressive growth
plans continue unchanged and we are proud to fulfil orders to new retail
stores on a daily basis.

In closing, I want to express gratitude to our valued shareholders for your
ongoing support of the Company. It is your belief in Chill Brands' vision that
propels us forward and we are committed to delivering value on your investment
as our journey of growth continues."

-ENDS-

About Chill Zero Vapour Products

Chill Zero vapour products are flavoured, disposable personal diffusers. They
offer a similar experience to traditional vaping products without the
addictive effects of nicotine or the harmful qualities of combustible tobacco
products. They appeal to a wide range of consumers including those who wish to
quit smoking or reduce their nicotine intake, as well as those who enjoy the
flavours, sensation, and social aspect of using vapour products.

Chill Zero vapour products are available in a range of sizes and flavours
including 600, 1,500 and rechargeable 3,000 puff variants sold to customers in
the US and UK.

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is concerned with the
development, marketing and distribution of wellness and recreational products
containing natural, functional ingredients. The Company's proprietary product
range is distributed by some of the most recognisable convenience retail
outlets in the US and includes nicotine-free disposable vapour products that
cater to the rapidly growing market for tobacco alternatives. Chill Brands
also operates the chill.com e-commerce website, on which it is building a
marketplace of products from third-party brands.

Publication on website

A copy of this announcement is also available on the Group's website at
(http://www.chillbrandsgroup.com/) http://www.chillbrandsgroup.com
(http://www.chillbrandsgroup.com/)

Media enquiries:

 Chill Brands Group plc                                      contact@chillbrandsgroup.com
 Allenby Capital Limited (Financial Adviser and Broker)      +44 (0) 20 3328 5656
 Nick Harriss/Nick Naylor/Lauren Wright (Corporate Finance)

Kelly Gardiner (Equity Sales)

 

 

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