International CBD group Chill Brands has raised £2.6m to expand the development and production of its vapour products.
The London-listed business secured funds from a high net-worth investor in two parts: a subscription of 25 million new shares worth 4p each and convertible unsecured loan notes with a value of £1.6m.
Chill Brands said the money would provide it with growth capital to expand the development and production of vapes and to fund a marketing drive for the Chill.com e-commerce site.
Alongside the £560,000 raised last month from a financial institution, the new capital raise will also be used to develop sales and account support functions for brands joining the Chill.com marketplace.
The group said this would allow it to take advantage of B2B sales opportunities by offering an enlarged product range to an array of distributors and retail stores.
CEO Callum Sommerton added: “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.”
Chill Brands is headquartered in Colorado and listed in London. The group operates across the US, UK and Europe, selling a range of CBD products, including gummies, oil and herbal cigarettes. As well as the Chill.com platform, it also owns the Zoetic health and wellness CBD brand.
A number of its products are going through the novel foods process with the Food Standards Agency. While last April the agency published a list of products that could stay on the market pending full safety assessments, progress towards full authorisations has been sluggish.
In March it was revealed that two new drinks brands had used the cold-pressed method to create CBD for their products, bypassing the novel foods regime.
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