Vape company Chill Brands hammered home after Rishi announced a ban on disposables

Shares of London-listed vaping companies fell sharply yesterday after Rishi Sunak announced a ban on disposable products.

Vapemaker Chill Brands lost almost a third of its value, with shares falling 30 percent, wiping £4.6 million off its value and leaving the company with a market capitalization of just over £12 million.

Shares of Supreme also fell about 2 percent in early morning trading before recovering in the afternoon as the company claimed to be “ahead of the curve” on regulatory changes.

The Prime Minister has outlined plans he hopes will stamp out the growing number of young people taking up the habit.

Recent data shows that the number of children vaping has tripled in the past three years, with 9 percent of 11 to 15-year-olds using the devices.

And apart from banning disposable vapes, the government has also said it will introduce restrictions on flavours, colorful packaging and the way vapes are displayed in shops.

This is a major problem for manufacturers and distributors, who will have to adapt to the changes.

“Effectively, investors are saying there is a big risk to profits, whether it’s from Sunak’s latest announcement or the government’s general move to prevent young people from taking up the vaping habit,” says Russ Mould, analyst at AJ Bell.

Chill Brands stated that its products, equipped with charging ports, should not be classified as disposable. Top bosses welcomed the announcement after taking a “number of proactive measures” in recent months.