Proposed Open Offer

RNS Number : 7027K

Chill Brands Group PLC

09 May 2022

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) ("UK MAR"), AS AMENDED BY REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

9 May 2022

Chill Brands Group plc

("Chill Brands" or the "Company")

Proposed Open Offer

(London, UK, 9 May, 2022) Chill Brands, the international consumer packaged goods company, is pleased to announce an update regarding its fundraising plans.

Following the announcement on Tuesday 26 April 2022 (defined terms as per that announcement) that the Company had conditionally raised £3,500,000 (before expenses), an alternative proposal was received by Chill Brands' Board of Directors (the "Board") on Friday 29 April 2022. Following careful consideration, the Board has declined the proposal on the basis that it was not considered commercially viable as it would not provide the Company with sufficient working capital, or the funds required to resource business activities that are believed to be in the best interests of Chill Brands and its shareholders.

Further to feedback received from a number of long-term shareholders, the Company is pleased to confirm that it intends to follow the previously announced Fundraising with an open offer to shareholders to raise up to approximately £484,000 ("Open Offer"), subject to the passing of all resolutions at the upcoming General Meeting on 12 May 2022 ("Resolutions").  The Open Offer is proposed to be on economically equivalent terms to the Fundraising and at a 1 for 10 ratio to existing shareholdings.  A further announcement will be made on the Open Offer following the General Meeting.

Callum Sommerton, Chief Executive Officer, said: "We are pleased to announce our intention to make this Open Offer to enable our shareholders to subscribe on equivalent terms as participants in our recent Fundraising. Subject to approval at our upcoming General Meeting, our recent fundraising activity will ensure the Company is well capitalised and able to grow. In a world of CBD lookalike products, we will continue to work to differentiate the Chill brand from industry competitors as we seek to generate value for all stakeholders." 

-ENDS-

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is an international company focused on the development, production, and distribution of best-in-class hemp-derived CBD products, tobacco alternatives and other consumer packaged goods (CPG) products. The Company operates primarily in the US, where its products are distributed online and via some of the nation's most recognizable convenience retail outlets. The Group's strategy is anchored around lifestyle marketing that is designed to enhance the popularity of its products, channelling visitors to its landmark chill.com website.

Publication on website

A copy of this announcement is also available on the Company's website at   http://www.chillbrandsgroup.com

Media enquiries:

Chill Brands Group plc	[e-mail]
Allenby Capital Limited (Financial Adviser and Broker)	[phone]
Nick Harriss/Nick Naylor (Corporate Finance) Kelly Gardiner (Equity Sales)

 

END

 

 

MSCUPUACAUPPGBR