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(Alliance News) - Chill Brands Group PLC on Monday said that it has raised GBP2.6 million before expenses from a high net worth investor.
The fundraise by the Grand Junction, Colorado-based CBD products company consisted of two parts.
The first was a subscription for 25.0 million new ordinary shares, at a price of 4 pence per share, for a total of GBP1.0 million to be admitted from May 15.
The second was the issue by Chill Brands of convertible unsecured loan notes worth GBP1.6 million. The notes carry a coupon of 12% per annum for three years, and will be convertible into ordinary shares at 8p each.
Chill Brands said it would use the funds to expand the development and production of its vapour products, and to resource marketing initiatives to drive relevant consumer traffic to the Chill.com e-commerce domain.
It also intends to develop its internal sales and account support functions for brands joining the Chill.com products marketplace.
"We are thrilled to have secured funding from a new long-term investor. 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," said Chief Executive Officer Callum Sommerton.
"The past 18 months have been exceptionally difficult for the company and its CBD industry peers, but Chill Brands is now diversified and on course to expand its product distribution platform."
Chill Brands shares were trading 1.0% higher at 4.54 pence each in London on Monday afternoon.
By Holly Beveridge, Alliance News reporter
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