Shares in vapes business Chill Brands have been suspended amid an ongoing insider trading investigation into its boss.
Chill Brands suspended its CEO Callum Sommerton in April as it launched an internal investigation “after allegations were raised around the use of inside information”. It is also undertaking a second internal probe, into “a number of commercial arrangements that the Company has entered into connected to its UK vape business”. The investigations are being run by top law firm Freshfields Bruckhaus Deringer.
Today Chill said its board is “unable to currently provide the market with an accurate update of its financial and trading position”.
As a result, its shares will be suspended from today. The business said it will “provide a more detailed update” when the investigation is over.
The shares closed at 2.15p on Friday, down almost 98% from their peak in 2021. That values the business at just under £11 million. The shares took a big hit earlier in the year when the UK Government proposed a ban on disposable vapes.
On the day he was suspended, Somerton wrote on X.com: “I am surprised and disappointed by the allegations made against me, which I believe are without merit. I am confident that I will be vindicated. I will avoid further comment at this time to allow the process to progress.”
Sommerton, a 28-year-old former lawyer, became Chill’s CEO in 2022, making him one of the youngest ever bosses of a London-listed business.
Chill specalises in nicotine-free vapes, with a particular focus on CBD products.
