(Alliance News) - Chill Brands Group PLC shares jumped on Wednesday after it launched its cannabidiol products into select cannabis dispensaries as part of a new sales pilot programme.
Shares in the Grand Junction, Colorado-based CBD products company were up 15% to 3.00 pence each in London on Wednesday morning.
Chill Brands's products will initially enter 20 fully licensed dispensaries, with additional locations expected to be added during the fourth quarter of this year.
The pilot will be launched with Bellator Group LLC and Dyspense Technologies Inc, both Colorado-based sales and retail logistics companies with specific expertise in cannabis products.
After this pilot phase is completed, the company intends to scale its dispensary sales to additional locations across the US.
Chill Brands noted that during 2021, dispensaries in Colorado generated over USD2 billion through the sale of cannabis-based products. "Consumers that frequent these stores typically have higher levels of discretionary income than convenience store shoppers, are already aware of and interested in cannabinoids including CBD, and are open to trialling new brands and products," Chill Brands added.
Chief Executive Officer Callum Sommerton said: "This pilot programme is an opportunity to diversify the sales venues in which Chill products can be found. As demand for novel, non-psychoactive products continues to grow, we will be well positioned to offer Chill CBD to target consumers both to complement their cannabis purchases and as a non-intoxicating recreational alternative to THC."
By Sophie Rose; sophierose@alliancenews.com
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Chill Brands (CHLL)