Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF), the UK-listed consumer goods company known for its wellness and vape products, has locked in a £1 million fundraising deal to reboot its operations after a challenging period.
The new investment comes via convertible loan notes (CLNs), a type of financing that allows lenders to convert debt into shares.
The notes carry a 10% annual interest rate and will mature in three years. Importantly, Chill’s largest shareholder, Jonathan Swann, has underwritten the full amount.
Investors putting in up to £50,000 must pay upfront, while larger commitments can be drawn down over the next 12 months.
The loan notes convert at a 30% discount to the share price prior to the stock’s suspension last June.
Those backing the round will also receive warrants, essentially options to buy shares at a set price, with terms linked to future share performance.
The funds will go toward launching a new line of rechargeable vape products, expanding Chill’s chill.com marketplace, and ramping up distribution. Management is also eyeing bolt-on acquisitions.
Chairman Harry Chathli said: "We would like to extend our heartfelt gratitude to our largest shareholder, Jonathan Swann, for his unwavering support and commitment to our company.
"His agreement to underwrite the £1 million proposed fundraising provides us with the financial stability we need as we navigate the final stages of our audit process and plan for the future."
Separately, Chill said its delayed financial accounts should be published by mid-May.
Completion had been held up by issues accessing data from its US subsidiary and ongoing efforts to secure funding.
The interim results for the first half of 2025 will follow soon after. The company noted the delays were “significant” but said audit hurdles had now been cleared.
Chathli added: "We acknowledge that the completion of this audit and the publication of our financial results are significantly overdue.
"However, with the identified challenges now resolved and the fundraising underwritten, we are confident that we will quickly progress towards finalising the audit and will then seek to lift the suspension and resume trading in the company's shares."