Vape maker Chill Brands suspends CEO (updated)
22/04/2024 08:28
(Adds Sommerton comment in paragraphs 3-4; company comments and
background from paragraph 5)
April 22 (Reuters) - Vape maker Chill Brands CHLL.L
said on Monday Callum Sommerton had been suspended as its CEO
after allegations were raised around the company's use of inside
information.
The company said law firm Fieldfisher had been appointed to
conduct an investigation into the allegations, but added that
Sommerton's suspension did not imply that he was guilty of
misconduct.
Sommerton said he was surprised and disappointed by the
allegations in response to a message sent via LinkedIn.
"I am confident that I will be vindicated and will avoid
further comment at this time to allow the process to run its
course," he said.
Chill Brands said vendors, customers and shareholders
should be assured the company continues to operate as normal and
the process of appointing an interim chief executive was
underway.
It will be engaging with the relevant authorities,
including the Financial Conduct Authority, and the
investigation's findings will be reported in due course, it
continued.
The company, whose strategy is centred on a
nicotine-free vape product, saw its share price collapse earlier
this year when the UK government announced plans to ban
disposable vapes. It has since recovered lost ground.
Sommerton is a former intellectual property lawyer who
previously worked as Chill Brands international brand director
before being appointed chief executive in 2022, according to the
company's website and his LinkedIn.
(Reporting by Eva Mathews in Bengaluru and Emma Rumney in
London)
((Eva.Mathews@thomsonreuters.com;))