Home Estate Planning Chill Brands: Shares in CBD and vapes maker suspended as investigations continue

Chill Brands: Shares in CBD and vapes maker suspended as investigations continue

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Shares in vape and CBD products manufacturer Chill Brands have been suspended amid a number of ongoing investigations.

The London-listed company announced in April that its chief executive, Callum Sommerton, had been suspended over “allegations around the use of inside information”.

At the time the firm, which operates chill.com and manufactures tobacco alternatives including CBD pouches, said it had appointed law firm Fieldfisher to investigate the claims.

Sommerton is a former Mishcon lawyer who became CEO of Chill Brands in April 2022.

Chill Brands is also subject to investigations into a number of commercial arrangements that the company has entered into connected to its UK vape business.

In an update to the London Stock Exchange this morning, the company said as a result of the investigations its board “are unable to currently provide the market with an accurate update of its financial and trading position”. 

The business added: “At this time both investigations remain ongoing, and it is the company’s intention to provide a more detailed update on its trading, operational and strategic position once this is concluded.”

Earlier in April, bosses at Chill Brands said they were disappointed after shareholders made an attempt to oust two other senior directors.

Also earlier this year Chill Brands was bruised by the government’s decision to ban disposable vapes.

Though Chill Brands said its products were excluded from the plans, shares dived as much as 30 per cent on the day the ban was made public.

Chill vape products are sold in more than 475 independent retailers and last September secured a deal with WH Smith. 

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