Member Info for Billyboy2fromiii

Kipper,

If you have time perhaps you could state why TG has been “excellent” today.

I assume Fred has not shown up over there?

BB2

Hi,

I have today asked this question to Buchanan who I hope will refer to CHLL and reply to me...…..

Hi George,

I have a question….

In today’s RNS it was stated

“All previously announced targets and distribution agreements remain in place despite international logistics issues influencing speed of rollout”

Also, Trevor specifically quoted

“ we are confident that previously announced targets are realistic and achievable”

As a genuine shareholder, I would like to ask exactly what “previously announced targets” are being referred to in today’s RNS.

I have read through ALL previously issued RNS and the only specific targets that I have identified is firstly in the RNS dated 5th Feb 2000, which states………..

“Total stores represented by these two distributors are approximately 12,000. The Company's realistic objective is to supply around 500 new stores per month, subject to customer demand and manufacturing constraints, and so management estimate that it is likely to take up to two years for products to be rolled out across the entire network”

Obviously, this objective of 500 stores per month has not been achieved so I do NOT think this target is being referenced.

That leaves the RNS dated 15th Feb 2021, which states………….

“Leveraging dedicated shelf space, our products will take prime position within an initial 10,000 stores committed during the 'Prepare for Lift Off' phase”.

Interestingly this 10,000 store figure is the same as the 10,000 projected store count figure (over the next twelve months, along with 30,000 by year end 2022) that is shown on the Company Presentation that I have a copy of. However, this Presentation has NOT been officially released to shareholders via the Company website and as such I do not see how the Company can be referring to this Company Presentation in today’s RNS.

So, in summary, I am respectfully asking what exactly is the “previously announced target” that today’s RNS specifically states “remain in place” and are “realistic and achievable”. Hopefully, as CHLL have stated today that they are working diligently to “enhance the Group's approach to investor relations and market communications”, they will be willing to provide a specific answer to this genuine question from a genuine shareholder following today’s RNS.

I will share any reply for the (hopeful) benefit of all genuine shareholders.

Regards, BB2.

Vas,

....which actual targets are the BODs referring too.....

In my opinion, you ask a great question here.

I seem to have a good relationship currently with Buchanan as they have replied to me regarding the q&a upload to website (expected by the end of this week). So I am going to ask that question. I believe it is a perfectly reasonable question from a shareholder in direct response to a statement made in the RNS.

I will post any reply on here for all to see.

BB2.

Hi Vas,

Been out most of the day, so just catching up.

Yes, done the maths.

$561,330 divided by existing 2,500 stores equates to approx $2.50 per store per day. Assuming approx $10 per item with approx 50% to CHLL that is approx half a product per store per day. If you remember (following my several calls to SF) I was previously working on a minimum of 1.3 products per store per day. I had rounded this up to 2 products per store per day to expect $2.25m revenue for the quarter based upon only 2,500 stores for my "expectations".

Obviously a big disappointment.

Lots of questions following this RNS.

BB2.

Schalf,

Personally, I do not see how any genuine investor can be happy with $561k for the quarter. That is not being negative, just realistic.

I was hoping for a minimum of $2m based upon the previously disclosed 2,500 stores.

On a positive, the tone of the RNS seems much improved. They seem to be trying to identify with investors concerns. Confirmation that targets and agreements remain in place. A definite attempt at better investor relations.

I think the sp will go lower SHORT TERM before It goes higher LONGER TERM. A true test for genuine holders now.

Good luck to all.

Kipper, I acknowledge and appreciate your comment. Apology accepted.

BB2

Morning,

I have just received this reply from Buchanan regarding the uploading of the q&a from the GM.......

Having spoken with the company, they are clarifying one final point with their advisers before the Q&A can be uploaded to the website. I have been informed that it will be up by the end of the week......

I will chase up again at the end of the week if it has not indeed been uploaded.

In addition, Once I have seen the exact answer to my question regarding the whereabouts of the Q3 update, I will chase up the Company directly.

BB2

Morning,

As the Q&A from the GM have not been uploaded to the website, I have sent the following email to Buchanan...
............It is now fifth working day since the GM. The Q&A from the GM have not been uploaded to the Co Website as stated. I appreciate you could not previously give an exact timeframe but you did state 2within a few working days”. I would have expected that it would have been uploaded by now. It was stated in the GM that investor relations and communications would be improved going forward. Unfortunately, it appears that currently nothing appears to have changed in this regard.

I would appreciate, that in your role of “Media & Investor Enquiries”, if you could contact CHLL and ask exactly when the Q&A will be uploaded to the website...........

BB2

Vas,

Question 5 of my 15 questions at the GM specifically asked when the July to Sept quarter report would be received. This question was asked during the meeting.

I would like to see the exact answer given which is why I am awaiting the published q & a. I would hope that these will be published by Tuesday pm as that would be one week since the meeting which I would deem sufficient time to publish. If not, I will chase the Company up directly regarding this on Wednesday.

As regards the quarters report, I would certainly have expected/hoped it would have been by end of Oct. If it is next week, then ok. However, I really do not think it should take longer than that. Again, i will chase this up directly with the Co on Wednesday.

BB2

Craigy,

Very unusual for Fred not to comment on things. But it is now 8 days without comment…

BB2

Just checking on Fred. He has not posted since 20th, very unusual. Hope he is ok.

BB2

Vas,

The 10,000 was also shown as a projection in the Co Presentation that I have seen but was not made available via website.

That is why I asked questions 6 and (especially) 7 in my 15 questions for the GM.

BB2.

Hi,

I have chased up Buchanan for a reply and have just received this from them....

The Q&A will be uploaded to the website in due course, I will let you know once it has. I cannot give an exact timeframe but it should be within the next few working days.........

BB2

I have emailed Buchanan to ask if, when and where the q and a will be published.

BB2

Nexus,

I was on a train so a bit difficult but I did listen in. I am pleased to say all questions appear to have been asked. I think (can someone confirm please) they stated that questions and answers would be published. Did I hear that correctly?

As expected, there was no real direct answers as any “new” news would have to be reported via RNS first.

On a train again so I will contact Buchanan tomorrow to see if they are being published.

BB2

4pm BST.

Buchanan have stated "We will be sharing the details shortly before the meeting"

BB2

Has anyone receive their log-in details from Buchanan yet for GM ?

BB2

Morning,

May I ask who is attending the GM tonight.

I have registered but am on a train to London to the match this pm at 4pm so may struggle to listen in for the duration.

Is anyone willing to post a summary on here and detail which (if any) of my 15 submitted questions are asked and (hopefully) answered.

BB2,

Blue,

Correct. My Letter of Representation (from A J Bell) has been sent (within timescales) to Buchanan and Ariada has duly acknowledged receipt and stated log in details will be sent on Tuesday. In addition, all questions have been sent to Buchanan (within timescales) and receipt acknowledged by George who has stated they will be passed to CHLL.

BB2

Afternoon,

Just for completeness, I have added four further questions to be asked at next weeks GM;

12. In the 29th July RNS, it was stated “ The Group's rollout of Chill-branded CBD tobacco alternative product continues with speed and scale” and “The expansion is set to accelerate in the coming months and the Group looks forward to updating the market accordingly”. Accordingly, as per question 8, could you please update us as to the current Store Count in the US.
13. In the 1st July RNS, it was stated “ The 'Chill' brand has enjoyed significant pre-launch interest in the UK, and the Company looks forward to reporting on its performance in the future”. Accordingly, could you please update us on the performance of the Chill brand in the UK.
14. In the RNS dated 15th Feb, it was stated “As previously announced, the Group has signed a number of distribution agreements with the potential to facilitate the distribution of the Group's Chill products across 17 distinct European markets. The Group is committed to ensuring proper compliance across each of these jurisdictions, and is working closely with its legal advisers to drive a compliant and driven rollout into the wider European market. The Group will provide a further update as these matters progress”. Could you update us as regards this.
15. In the RNS dated, 15Tth Feb, it was sated “Further to the Group's interim results issued on 28 January 2021, the Group is pleased to announce that it has now executed an agreement with a prominent retail partner in the UK. This milestone agreement has the potential to facilitate a large-scale rollout across some of the UK's most recognised high street brands, granting the Group further exposure to this rapidly growing market. This contract is conditional on Zoetic achieving Food Standards Agency ('FSA') Novel Foods authorisation for its CBD product range. The Group is pleased to announce that progress has been made on this front, and the application for authorisation has now been submitted in accordance with FSA guidance. Zoetic looks forward to updating the market in due course on this matter”. Could you please update us as regards this.

I can confirm that all 15 questions have been submitted to the appropriate channel (chillbrands@buchanan.uk.com), as per 29th Sept RNS, within the stated timescale of 4pm BST on Friday 22nd October. I trust that (as per 29th Sept RNS) "At the GM, the Board will endeavour to answer any questions so submitted".

BB2

Morning,

These are the questions that I requested to be asked at next weeks GM;

1. The 2021 Account states that the average number of staff was 2 (2020; 23). Please explain how a global business can be built with just two staff members.
2. Please explain why the cost of sales for year ending 2021 was £41k more than revenue (It has previously been stated the gross margin is approx. 30%).
3. In 17th May RNS, it was stated “Following receipt of the orders outlined above, the Group is trading profitably”. Can you please confirm that CHLL are currently trading profitably.
4. In 17th May RNS, it was stated “the Group intends to report on its sales on a quarterly basis”. Do you honestly feel that the “Business Update” dated 1st July was an appropriate quarterly report on sales?
5. In 17th May RNS, it was stated “the Group intends to report on its sales on a quarterly basis”. When will the quarterly sales report for period 1st July to 30th September be released?
6. Why has the Company Presentation titled “Established, Revenue-Generating and Primed for Large-Scale US Growth” not been made available to all shareholders (via Company website)?
7. Are the Chill Brand Store Count Projections (on page 11 of the above Company Presentation) still applicable.
8. In the 17th May RNS, It was stated “ We look forward to updating the market further when we report our full year results in July”. The results published on 29th September (rather than July) did not provide an update on “post period trading”. Could you please provide an update on current trading and current store count numbers, (as promised on 17th May).
9. In 9th March RNS, Trevor Taylor, Co-CEO of Zoetic, said: "We are thrilled to have found an ideal financial partner in LDA Capital”. On 4th May this financing agreement was cancelled with a termination fee of £1,200,000. Please explain why LDA Capital were initially deemed an “ideal financial partner” but subsequently it cost the Company £1.2m to terminate this agreement.
10. Please confirm how much the Co paid for the domain name Chill.com.
11. Please explain the thinking of releasing the Preliminary Results RNS on 31st August at 18.25pm. The timing of this, in my opinion, did not send out a positive message to the Market.

BB2