Chill Brands sees hit to single-use vape sales ahead of UK ban

(Sharecast News) - Troubled Vape maker Chill Brands has said a planned government ban on single-use vapes had already started to hit UK sales, and said court case over claims of fraud and theft by former executives was due to start next week. The ban, due to come into force next June next, had resulted in diminishing demand among retailers to stock disposable vapes.

"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 in a trading update on Monday.

In response, Chill said it was in talks with distributors to find new global markets and was set to launch a range of nicotine-free e-liquids early next year, designed to be refilled with nicotine shots added.

Chill, whose shares were suspended from trading in June amid the fraud allegations, 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 Conduct Authority to keep the shares suspended.

Publishing the report would be a "prerequisite for the lifting of the suspension" of its shares, the firm said.

The company earlier this year alleged that two of its former executives were involved in fraud, embezzlement and theft at the firm, including transferring the website name and cash to themselves while the chief executive was suspended during a separate probe.

A hearing in a US court is scheduled for December 19 in a bid to recover the assets including its website domain.

"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," said chief executive Callum Sommerton.

"In the meantime, we have been making headway with new product development and have established a new business stream to support our growth ambitions."

Reporting by Frank Prenesti for Sharecast.com