Chill Brands Group PLC on Friday said it has raised £2.4 million, to invest in further growth.
The CBD products company said it has conducted a placing of 28.5 million shares at a price of 3.75 pence each, and a conditional subscription of 3.5 million shares at the same price.
Shares in Chill Brands fell 5.7% to 3.96p each in London on Friday afternoon.
Chill Brands also announced the capitalisation of £1.2 million of liabilities predominantly comprised of inventory debt financing by existing significant shareholder, Jonathan Swann, for 32.0 million new shares.
Chill Brands said sales and distribution of its vape products have ‘expanded rapidly’ since their launch in August last year.
The funds raised will be deployed to support further growth as Chill Brands ‘continues to record increasing demand for its products from customers and additional retail store chains.’
Chief Executive Officer Callum Sommerton said: ‘We are very pleased to have secured funding to fuel the next chapter of our growth. These resources will be deployed to procure the ever increasing number of products ordered by new and existing customers and to further expand Chill Brands’ distribution network of major retailers.
‘Uptake of our Chill vape products continues to exceed expectations and sustained demand for reorders from our current independent retailers is a clear indicator that our products are resonating well with consumers.’
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