Chill Brands Regulatory News (CHLL)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

3 April 2023

Chill Brands Group plc

("Chill Brands" or the "Company")

Company Raises £2.6 million

Chill Brands, the international consumer packaged goods company, is pleased to announce that it has raised £2.6 million (before expenses) from a high net worth investor (the "Fundraise").

The Fundraise consists of two parts:

(1) a Subscription for 25,000,000 new ordinary shares of 1 pence each ("Ordinary Shares") at a price of 4 pence per Ordinary Share for a total of £1,000,000 (the "New Shares") to be admitted from 15 May 2023; and

(2) the issue by the Company of convertible unsecured loan notes ("Convertible Loan Notes") with a value of £1.6 million. The Convertible Loan Notes carry a coupon of 12% per annum for a term of three years from the date of issue on 3 April 2023, and will be convertible into Ordinary Shares at 8 pence per Ordinary Share.

The New Shares have been issued at 4 pence per Ordinary Share, a 10.1% discount to the closing mid-market price of Ordinary Shares on 31 March 2023. The Convertible Loan Notes are convertible at 8 pence, a 79.8% premium to the closing mid-market price of Chill Brands' Ordinary shares on 31 March 2023. Conversion shall be subject to approval of a relevant shareholder resolution at the next annual general meeting of the Company's shareholders.

Use of Funds

The Fundraise, in combination with additional funds raised by way of an investment from a financial institution as announced on 16 March 2023, will provide the Company with growth capital 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.

The Company will also develop its internal sales and account support functions for brands joining the Chill.com products marketplace. This will better facilitate the onboarding of recently signed brands and allow the Company to take advantage of B2B sales opportunities by offering an enlarged product range to an array of distributors and retail stores.

Callum Sommerton, CEO of Chill Brands, said: "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.

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."

Admission and Total Voting Rights

The New Shares will be issued and an application will be made for the New Shares to be admitted to trading on the Main Market of the London Stock Exchange and to listing in the Standard Segment of the Financial Conduct Authority ("FCA") Official list, with effect from 15 May 2023 ("Admission").

On Admission, the Company will have 286,115,305 Ordinary Shares in issue, each with one voting right. There are no shares held in treasury. Therefore, the Company's total number of Ordinary Shares and voting rights will be 286,115,305 and this figure may be used by shareholders from Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

-ENDS-

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is concerned with the development, marketing and distribution of wellness and recreational products containing natural, functional ingredients. The Company's proprietary product range is distributed by some of the most recognisable convenience retail outlets in the US and includes nicotine-free disposable vapour products that cater to the rapidly growing market for tobacco alternatives. Chill Brands also operates the chill.com e-commerce website, on which it is building a marketplace of products from third-party brands.

Publication on website

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

Media enquiries: