Jonathan Swann, the largest shareholder in the company, has fully financed this crucial initiative, which will drive both strategic growth and operational improvements.

Key Fundraising Highlights

The fundraising approach demonstrates a thorough investor-centred strategy which focuses on creating sustainable value over time.

• Amount Raised: £1 million
• Instrument: Convertible Loan Notes (CLNs)
• Conversion Price: Investors will receive each new ordinary share at a rate of 1.5 pence which provides a 30.2% discount compared to the closing share price before trading was suspended on 3 June 2024.
• Interest Rate: 10% per annum
• Maturity: Three years from the date of issue
• Warrants: Each CLN subscriber will receive one warrant, whose exercise price reflects the volume-weighted average price of the company’s shares calculated over the ten trading days preceding the drawdown notice.

Underwriting Confidence

Jonathan Swann, the largest shareholder of Chill Brands, fully underwrites the fundraising initiative. His financial backing reveals deep confidence in the company’s future potential, while ensuring sufficient stability for executing its ambitious objectives.

Strategic Use of Proceeds

The company strategically invested the fundraising proceeds to finance essential growth initiatives across product development and marketing, along with infrastructure expansion to enhance market position and shareholder value.

Product Development

The investment will facilitate the introduction of new pod-based vaping products that meet compliance standards and offer rechargeable and reusable features. The company's strategic actions match current consumer trends and regulatory demands to maintain its market relevance amid rapid changes in the vaping industry dynamics.

Marketing Expansion

Chill Brands plans to enhance its marketing initiatives for the chill.com marketplace. The company plans to boost its growth in the digital and retail sectors by targeting both brand awareness and customer acquisition.

Infrastructure Enhancement

Investing in improved sales and distribution infrastructure will help the company to bring in and support more brands. Chill Brands plans to build an enhanced field sales operation to provide better support services for both its business partners and customers.

Working Capital

The company will use some of the proceeds to fund general working capital needs and enable potential bolt-on acquisitions, which will help maintain operational stability while preparing for future opportunities.

Financial Reporting Update

Chill Brands announced progress regarding its financial reporting activities. Chill Brands has almost completed its audit for the fiscal year ended March 31, 2024, and anticipates releasing the audited numbers by mid-May 2025. The company will follow up by publishing unaudited interim financial statements for the six months ended September 30, 2024.

The reporting delays resulted from both difficulties accessing data from the U.S. subsidiary and prolonged fundraising activities. The company demonstrates its commitment to transparency and investor trust through these updates, even as it faces operational challenges.

Positive Investor Sentiment

The underwriting led by Jonathan Swann showcases strong support from shareholders and increases investor trust in Chill Brands' prospects. The fundraising terms created investor appeal through discounted conversion prices and warrant issuance, establishing a basis for future growth strategies.

Driving Strategic Growth

The £1 million fundraising serves as an essential milestone for Chill Brands Group PLC and enables the company to implement its bold strategic initiatives. Chill Brands builds a strong business foundation through product innovation, marketing expansion, and infrastructure enhancement, seizing new market opportunities while delivering sustained shareholder value.

Looking Ahead

Chill Brands demonstrates belief in its business model through its operational and financial strategies. Investors, together with customers and partners, will witness exciting developments during the upcoming months. You can acquire updates by visiting chill.com or contacting Chill Brands’ investor relations team.