REG - Chill Brands Group - Company Raises £2.6 million

Chill BrandsAnnouncement

03/04/2023 07:15

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RNS Number : 0430V  Chill Brands Group PLC  03 April 2023

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

3 April 2023

Chill Brands Group plc

("Chill Brands" or the "Company")

 

Company Raises £2.6 million

 

Chill Brands, the international consumer packaged goods company, is pleased to
announce that it has raised £2.6 million (before expenses) from a high net
worth investor (the "Fundraise").

The Fundraise consists of two parts:

(1)  a Subscription for 25,000,000 new ordinary shares of 1 pence each
("Ordinary Shares") at a price of 4 pence per Ordinary Share for a total of
£1,000,000 (the "New Shares") to be admitted from 15 May 2023; and

(2)  the issue by the Company of convertible unsecured loan notes
("Convertible Loan Notes") with a value of £1.6 million. The Convertible Loan
Notes carry a coupon of 12% per annum for a term of three years from the date
of issue on 3 April 2023, and will be convertible into Ordinary Shares at 8
pence per Ordinary Share.

The New Shares have been issued at 4 pence per Ordinary Share, a 10.1%
discount to the closing mid-market price of Ordinary Shares on 31 March 2023.
The Convertible Loan Notes are convertible at 8 pence, a 79.8% premium to the
closing mid-market price of Chill Brands' Ordinary shares on 31 March 2023.
Conversion shall be subject to approval of a relevant shareholder resolution
at the next annual general meeting of the Company's shareholders.

Use of Funds

The Fundraise, in combination with additional funds raised by way of an
investment from a financial institution as announced on 16 March 2023, will
provide the Company with growth capital to expand the development and
production of its vapour products and to resource marketing initiatives to
drive relevant consumer traffic to the Chill.com e-commerce domain.

The Company will also develop its internal sales and account support functions
for brands joining the Chill.com products marketplace. This will better
facilitate the onboarding of recently signed brands and allow the Company to
take advantage of B2B sales opportunities by offering an enlarged product
range to an array of distributors and retail stores.

Callum Sommerton, CEO of Chill Brands, said: "We are thrilled to have secured
funding from a new long-term investor. This will provide us with the resources
needed to expand both on our product output and the marketing activities that
will help us to deliver those products to a wider audience of retailers and
consumers.

The past 18 months have been exceptionally difficult for the Company and its
CBD industry peers, but Chill Brands is now diversified and on course to
expand its product distribution platform."

Admission and Total Voting Rights

The New Shares will be issued and an application will be made for the New
Shares to be admitted to trading on the Main Market of the London Stock
Exchange and to listing in the Standard Segment of the Financial Conduct
Authority ("FCA") Official list, with effect from 15 May 2023 ("Admission").

On Admission, the Company will have 286,115,305 Ordinary Shares in issue, each
with one voting right.  There are no shares held in treasury.  Therefore,
the Company's total number of Ordinary Shares and voting rights will be
286,115,305 and this figure may be used by shareholders from Admission as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

-ENDS-

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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