Chill Brands’ Shares Crashed 42.3% on the UK Vape Products Ban

The Chill Brands Group PLC (LON: CHLL) share price crashed 42.3% after news broke that the UK government was planning to ban the use of disposable vape products in the UK, with a particular focus on vape sales to children below the age of 18 years. The company’s shares had recouped almost half of their losses at writing. 

The company expressed its commitment to adhering to all laws passed in the jurisdictions in which it operates and that it had differentiated its existing nicotine-free vape products by including USB-C recharging ports. 

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The consumer-packaged-goods distribution company noted that it was already preparing to launch a fully compliant reusable pod system vapour device. It confirmed that it will accelerate its efforts to bring the product to market. 

Still, the market reaction to the announcement was brutal as investors sold their shares, anticipating that a ban on disposable vape products would significantly negatively impact the company’s revenues and profits. 

However, Chill Brands reassured investors that it was an agile company that would respond proactively to legal changes in the United Kingdom and other jurisdictions. Luckily for the company, its retailers will have a grace period of six months to implement the rules arising from such a ban. 

The company also recently expanded its product range to include nicotine products that have widened its customer base. Still, the company intends to produce products to help people reduce their nicotine intake over time.  

Callum Sommerton, the CEO of Chill Brands, said: “The vaping landscape is constantly evolving, creating opportunities for businesses that are able to navigate the regulatory environment. The Chill brand has gained rapid traction with the support of major retailers, and I am confident that it will continue to do so as we move forward with our plans to launch reusable pod system vapes. Chill Brands Group is an agile company, and we are prepared to adjust to any legislation that may be enacted. In the meantime, our existing high-puff count and rechargeable devices will continue to be sold by US and UK retailers who have demonstrated a strong appetite for products brought to market under the Chill brand.”

Chill Brands share price. 

The Chill Brands share price plunged 42.31% to trade at 2.25p from Friday’s closing price of 3.90p.