Vape and CBD brand Chill Brands has said next year’s ban on single-use vapes has impacted on its sales in the UK, as the firm prepares to go to court over claims of fraud and theft by former executives.
The firm said it was already feeling the effect of the new rules which are set to come into place from June next year.
The Government’s plans, aimed at creating a smoke-free generation, have led appetite among retailers to stock disposable vapes to “diminish”, leading to declining sales in the UK, Chill said.
“While the company has continued to sell its existing products, it does not anticipate a significant resurgence in ongoing demand for these single-use products in the UK,” it said.
Chill, which sells products including nicotine-free vapes, CBD oils and vitamin supplements, is therefore in talks with distributors in the hope of bringing its products to other markets around the world, and is set to launch a range of nicotine-free e-liquids.
The new product, which is designed to be refilled and can have nicotine shots added, is expected to launch in early 2025.
The company also said it was simplifying its brand design in anticipation of future marketing regulations in the vaping sector.
Meanwhile, Chill shared an update to investors after launching legal action and seeing its shares suspended from trading on the London Stock Exchange in June.
It said the publication of its 2024 annual report was set to be delayed until the first three months of 2025, and that it had asked the financial watchdog for its shares to remain suspended.
Publishing the report would be a “prerequisite for the lifting of the suspension” of its shares, the firm said.
Chill alleged that two of its former executives were involved in fraud, embezzlement and theft at the firm.
This included transferring the website name and company money to themselves while the chief executive was suspended during a separate probe, according to the claims.
The company said a hearing at a US court is scheduled for December 19 in a bid to recover the assets including its website domain.
Chief executive Callum Sommerton said: “While the delay in completing the company’s audit is frustrating for investors and all involved, we are working hard and making progress with the relevant parties to complete and publish our accounts as soon as possible.
“In the meantime, we have been making headway with new product development and have established a new business stream to support our growth ambitions.”
