Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) has completed a £2.4 million equity fundraise to support the company's rapid expansion of the distribution of its vape products.
The round comprised a £1.2 million private placement with Allenby Capital and a £1.2 million capitalisation of debt financing supplied by an existing shareholder.
A significant portion of the net proceeds from the fundraiser will be directed towards accelerating the sales and distribution of Chill ZERO, the company's nicotine-free vape product.
Chill ZERO has already launched in numerous locations, including WHSmith travel stores, Morrisons stores and several major roadside retail stores.
With the new funds, Chill Brands will further develop its distribution network of independent stores while continuing to service existing accounts, supporting sales rates with new point-of-sale displays, out-of-home advertising and other marketing campaigns.
Callum Sommerton, chief executive of Chill Brands, commented: "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.
“We are now equipped to scale the company's operations to meet the growing appetite for our products. Over the coming months, we will engage with further leading stores and drive brand awareness through targeted marketing campaigns as Chill ZERO launches into mainstream retail."
The fundraising process involves the conditional placing of 28.5 million ordinary shares and a subscription of 3.47 million ordinary shares, all at 3.75p each.