REG - Chill Brands Group - Company Update and Lifting of Suspension

Chill BrandsAnnouncement

11/08/2025 07:45

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RNS Number : 6946U  Chill Brands Group PLC  11 August 2025

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

 

11 August 2025

Chill Brands Group plc

("Chill Brands" or the "Company")

 

Company Update and Lifting of Suspension

Chill Brands, the consumer packaged-goods distribution company, provides an
update on its operational progress, financial position and future strategy,
and announces that the Company's listing on the Official List Equity Shares
(transition) category of the Main Market of the London Stock Exchange has been
restored.

The restoration of the listing of the Company's ordinary shares of 1 pence
each ("Ordinary Shares") occurred at 7:30am today, 11 August 2025.

Background to the Suspension

The suspension of trading in the Ordinary Shares was implemented on 3 June
2024. Trading in Ordinary Shares remained suspended as the Company completed
the audit of its Report and Accounts for the financial year ending 31 March
2024 (the "FY24 results") and subsequently the preparation of its unaudited
Interim Results.

Chill Brands completed and published its audited FY24 results on 23 June 2025.
This was followed by the release of interim results for the six months to 30
September 2024 on 11 July 2025, and the release of a second set of interim
results for the twelve months to 31 March 2025 on 31 July 2025.

The announcement of interim results for the twelve months to 31 March 2025
followed the Company's announcement of a change to its accounting reference
date, which has been changed to 30 September. Accordingly, the Company's next
audited financial statements will cover the 18-month period ending 30
September 2025 and will be published by 31 January 2026.

Financial position

On 23 May 2025, Chill Brands announced that it had raised a total of £1
million through the issue of convertible loan notes (the "CLNs") and a CLN
drawdown facility.  Currently, £477,000 of the CLN drawdown facility remains
undrawn. In addition, the Company anticipates receiving a material VAT rebate
in the coming months resulting from elevated operating costs including certain
exceptional costs incurred during 2024. The Company also has access to an
inventory financing facility announced on 20 December 2023.

Based on current circumstances and modelling of various scenarios, the Company
expects that its existing cash and financing facilities will support its
operations into 2026. Ongoing improvements in trading conditions and
incremental revenue growth, particularly from the Chill Connect distribution
division, are expected to enhance the Company's financial position.

As detailed in the FY24 financial statements, the Board has modelled a range
of trading scenarios, including downside cases that reflect potential delays
or disruptions to commercial progress. In such scenarios, the Company has the
flexibility to reduce operational expenditure, including staff and marketing
costs, and to defer discretionary retail activity, thereby preserving cash and
extending the Company's cash runway.

The Company has historically raised capital on a periodic basis and remains
confident in its ability to do so if required. Throughout a challenging
period, the Board has exercised rigorous financial control and management
remains fully committed to taking prudent and timely steps to ensure the
Company can continue to trade.

Business overview and strategy

The Company's near-term focus is the expansion of its Chill Connect division,
a route-to-market and distribution business that provides a range of services
to fast-moving consumer goods ("FMCG") brands.

Chill Connect leverages the retailer relationships, distribution channels and
field sales infrastructure originally developed to support the Company's own
proprietary vaping products. This capability has now been repurposed to serve
third-party brands, allowing Chill Connect to generate multiple streams of
revenue including:

·    monthly retainers for brand representation and field sales services;

·    commissions on orders and recurring revenue from brand partners; and

·    margin-based income from conventional buy-and-sell distribution
activity.

The division has already secured a number of significant clients in the
tobacco alternatives category, notably those offering nicotine pouches and
compliant rechargeable vaping products. The UK ban on disposable vapes,
effective from 1 June 2025, has not dampened consumer appetite for tobacco
alternatives and instead the market has shifted towards quality reusable
devices supplied by established brands, which now form a key part of Chill
Connect's offering.

The Board is in advanced negotiations with several potential brand partners,
including those offering high-demand consumer products in regulated and
fast-growing categories. If secured, these agreements are expected to generate
significant revenues based on forecasted sales volumes and strong retailer
demand, providing a robust platform for further commercial expansion.

In support of this expansion, Chill Brands is also:

·    launching a wholesale ordering portal to enable seamless product
discovery and purchasing for retailers;

·    growing its sales team to meet demand and expand geographic coverage;
and

·    establishing in-house fulfilment and product storage facilities to
reduce reliance on third-party logistics providers, improving both cost
efficiency and service flexibility.

Sales volumes within Chill Connect are increasing. While this creates pressure
on the Company's working capital due to the need for inventory acquisition,
the Company is actively managing this through a number of mechanisms and
intends to use its inventory financing facility.

In parallel, the Company continues to invest in the development of its
Chill.com e-commerce marketplace. While this channel currently contributes a
modest portion of revenue, it remains a longer-term strategic priority. The
website has recently been refocused on the UK market, supported by the launch
of the Company's first paid advertising campaigns on Meta platforms and the
expansion of content to improve visibility and engagement. The Company has
also engaged conversion rate optimisation ("CRO") specialists to enhance the
purchasing experience. Looking ahead, the platform will benefit from the
introduction of internal fulfilment capabilities, which will allow Chill
Brands to evolve beyond its current drop shipping model towards a more dynamic
and valuable service for partner brands.

 

Chill.com will require sustained marketing investment to fulfil its potential,
but this is being carefully paced to ensure that near-term capital is directed
towards higher short-term-impact distribution opportunities.

Having addressed historical issues and re-established a foundation for growth,
Chill Brands is now positioned to scale up its operations. While this growth
will likely entail further capital requirements, those requirements will be
directly linked to revenue-generating activities and commercial opportunity.
The Board believes that the path ahead is clear and the Company's potential is
significant.

Callum Sommerton, Chief Executive Officer of Chill Brands, commented:

"We are pleased to announce the restoration of the Company's listing, marking
a significant moment for Chill Brands Group. While this extended suspension
period has undoubtedly been challenging, it has allowed the Company to
navigate a difficult chapter, stabilise operations, and emerge with a renewed
strategic focus. We deeply appreciate the patience and unwavering support of
our shareholders during these testing times.

With the resumption of trading, there are compelling reasons for optimism
about the Company's future. Our Chill Connect division is steadily increasing
revenue and securing new commercial partnerships, while plans to revitalise
Chill.com and strengthen its role within our broader business ecosystem are
being enacted.

Chill Brands Group is now well-positioned to execute its refined growth
strategy, supported by an expanding network of commercial collaborators who
share our vision for a more agile product distribution landscape. As we
continue forward, we remain committed to delivering strong, sustainable
outcomes and look forward to providing updates as the business progresses."

-ENDS-

 

Media enquiries:

 Chill Brands Group plc                                      contact@chillbrandsgroup.com

+44 (0)20 4582 3500
 Harry Chathli, Chairman

 Callum Sommerton, CEO
 Allenby Capital Limited (Financial Adviser and Broker)      +44 (0) 20 3328 5656
 Nick Harriss/Nick Naylor/Lauren Wright (Corporate Finance)

Kelly Gardiner (Equity Sales)

 

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is a distribution-led
consumer packaged goods company focused on bringing novel fast-moving consumer
products (FMCG) to market. The Company specialises in the sale and
distribution of tobacco alternatives, functional beverages, and other
innovative consumer goods, with a particular emphasis on the convenience store
channel. Chill Brands partners with a mix of established FMCG businesses and
emerging high-potential brands to provide comprehensive route-to-market
solutions. 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/)

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