(Alliance News) - Packaged goods company Chill Brands Group PLC on Thursday said it is "well capitalised" after shareholders gave the green light to a recent fundraise.
The company said that it is yet to make any financial investments into its online activities, though has purchased the Chill.com domain name. However, "its online operations have enjoyed organic growth" with more than 10,000 unique visitors each month.
At a general meeting on Thursday, shareholders approved its recent GBP3.5 million fundraise.
"Amidst difficult market conditions and turbulence for some competitors, Chill Brands is now well capitalised for growth. From cutting costs to refining our model, there is a great deal of hard work ahead of us and we look forward to providing further operational updates in due course," said Chief Executive Callum Sommerton.
The company said a portion of the funds will be used to invest in digital activities, saying that this includes settling the USD800,000 outstanding balance for the Chill.com domain.
Chill Brands added that it has mutually agreed to end Ox Distributing LLC's 'master distributor' status and will instead sell directly into the physical retail channel.
Previously, all sales into retail stores were first made to Ox, who then would sell to sub-distributors and ultimately the products would be passed on into convenience stores.
"The complexities of this distribution model have prevented the company from fully controlling its sales channels and gathering business-critical data. This, combined with logistical and supply challenges along with general disruption to the convenience store environment during the pandemic, has prompted the company to reassess its approach to retail distribution," said Chill Brands.
The firm added that Ox remains "highly supportive" of the company and the two will transition to a "new working relationship".
Sommerton said: "The company benefits from a highly differentiated brand, premium quality products, and access to broad sales channels both online and via retail stores. It is time for us to capitalise on those advantages and we intend to do so through consistent execution of our digital and retail sales strategies."
Shares in Chill Brands were down 0.3% at 2.89 pence in late trade on Thursday.
By Sophie Rose; sophierose@alliancenews.com
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Chill Brands (CHLL)