REG - Chill Brands Group - Vape Sale into Major Retailer

Chill BrandsAnnouncement

20/12/2023 07:00

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RNS Number : 4386X  Chill Brands Group PLC  20 December 2023

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

20 December 2023

Chill Brands Group plc

("Chill Brands" or the "Company")

Vape Sale into Major Retailer

Chill Brands Group, the consumer packaged-goods distribution company, is
pleased to announce the sale of its Chill ZERO nicotine-free vapour products
into a top five UK supermarket.

The Company has received a substantial initial purchase order which will see
the listing of its Chill ZERO products in 1,500 of the leading supermarket
chain's UK stores (the "Order").

Chill ZERO products will enter these stores during Q1 2024. Following this
roll-out, Chill ZERO vape products will have been sold into more than 2,100
locations in the UK including independent and chain stores, receiving combined
gross sales and purchase orders in excess of £1.85 million (including VAT) in
the short time since their launch on 7 August 2023.

A further announcement will be made closer to the launch of Chill ZERO
products into these stores.

Callum Sommerton, Chief Executive Officer of Chill Brands, said: "I am
thrilled and immensely proud to announce that we have reached agreement to
sell our Chill ZERO vape products into a major UK supermarket. This milestone
not only signifies a major leap forward for Chill Brands in terms of revenues,
but also serves as a resounding validation of our product's appeal and the
strength of our brand.

These retail locations offer a high-visibility platform for our products,
enhancing their sales potential while improving recognition of the Chill
brand. We look forward to launching into their supermarket and convenience
stores in early 2024 as we further solidify our position in the market."

To support the continued growth of its sales channels while facilitating the
working capital needs of the Order, the Company has secured a supply chain
debt financing facility from a major shareholder, Mr Jonathan Swann. This
facility has a total credit limit of £1,000,000, carries a monthly interest
rate of 2% on funds drawn, is unsecured and has a term of one year (the
"Facility"). Mr Swann is considered a related party as a result of his 6.55%
shareholding in the Company. The board of directors of Chill Brands consider
the terms of the Facility to be fair and reasonable and in the best interests
of all shareholders. The funds will support the acquisition of inventory and
the roll-out of products to new stores, reducing the cashflow impact of the
Company's rapid expansion.

-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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