Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) said it raised £2.6mln to expand the development and production of its vapour products.
Funds, the consumer goods company said, were raised from a high-net-worth investor and consisted of two parts.
Firstly, a subscription of 25mln new ordinary shares at 4p per share, raising £1mln with the shares to be admitted for trading on 15 May.
Secondly, the company issued convertible unsecured loan notes with a value of £1.6mln which carry a coupon of 12% per annum for a term of three years and will be convertible into shares at 8p.
Capital will be used, according to a statement, to expand the development and production of its vapour products and to resource marketing initiatives to drive traffic to its website, Chill.com.
Alongside the £560,000 raised last month, today’s confirmed capital raise will also be used to develop sales and account support functions for brands joining the Chill.com marketplace.
This will allow Chill Brands to take advantage of B2B sales opportunities by offering a greater product range to various distributors and retail stores, it said.
"We are thrilled to have secured funding from a new long-term investor,” said chief executive Callum Sommerton.
“This will provide us with the resources needed to expand both on our product output and the marketing activities that will help us to deliver those products to a wider audience of retailers and consumers.”