Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) said it has received an initial purchase order for its disposable nicotine-free vapour products.
The order has been placed from a new distributor operating in Florida and the surrounding areas and represents a "significant portion" of its existing vapour inventory.
‘Chill Zero’ is under consideration by numerous retail buyers who represent convenience store chains in the US, the London-listed company said in a statement.
Subject to confirmation of final purchase orders, Chill Brands said it expects to have placed its entire first production run and is working with partners to prepare for reorder.
The company added that it is also taking steps to enable online sales of its vapes via the Chill.com website.
Legislation in the US, however, prevents the United States Postal Service and other major couriers from shipping vapour products regardless of their nicotine content.
However, the group has procured relationships with several specialist carriers that will allow it to provide compliant home delivery of its products.
This, it believes, will allow it to secure a sizeable opportunity to target online consumers who may be “underserved by the wider vapour industry”.
Chill Brands also said that it reached an amicable settlement in a dispute with a former employee which will have no material impact on its operations or financial position.