9th Dec 2024 12:32
(Alliance News) - Chill Brands Group PLC on Monday said its shares will remain suspended from trading until the publication of its 2024 annual report, expected in the first-quarter of 2025.
The London-based vape and CBD product retailer delayed the report's publication, and requested the trading suspension continue, following months of financial and legal trouble.
Chill Brands shares were suspended back in June following allegations of fraud and embezzlement by two former executives, who allegedly transferred company money and the brand's website domain, chill.com, into their own names.
The company initiated court proceedings against the former staffers in July in an attempt to recover the assets. It expects to clarify a timeline for the case in a planning hearing scheduled for December 19.
Alongside litigation, Chill Brands is grappling with a decline in UK sales, for which it cites the government's pending ban on single-use vapes. The Tobacco and Vape Bill, which aims to reduce smoking, comes into effect on June 1 2025, and according to the company, has already reduced appetite for vapes among retailers.
"While the company has continued to sell its existing products, it does not anticipate a significant resurgence in ongoing demand for these single-use products in the UK", Chill Brands said. "Despite these pressures, the company remains committed to serving international markets, where its existing range of single-use devices remain compliant and in demand".
The retailer noted its first partnership with an unnamed "international brand offering oral nicotine pouches and natural energy drinks", alongside a new range of nicotine-free e-liquids, currently in production and expected to launch early 2025.
Chill Brands said it "continues to work diligently on its audit for the 2024 financial year", with a return to trading contingent on publication of the report.
"While the delay in completing the Company's audit is frustrating for investors and all involved, we are working hard and making progress with the relevant parties to complete and publish our accounts as soon as possible", Chief Executive Officer Callum Sommerton said.
"In the meantime, we have been making headway with new product development and have established a new business stream to support our growth ambitions".
Chill Brands shares were last quoted at 2.15 pence each in London.
By Holly Munks, Alliance News reporter
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