Company Announcements

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

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