Boss of vape company Chill Brands suspended over allegations of ‘insider use’

The CEO of vape maker Chill Brands has been suspended amid allegations of insider use.

London-listed Chill Brands told shareholders on Monday that it had engaged law firm Fieldfisher to investigate allegations involving boss Callum Sommerton.

Chill Brands said it had launched the search for an interim chief executive, but that Sommerton’s suspension does not constitute disciplinary action, nor does it imply any presumption of guilt, or that a decision has been made.

The group, which is working with relevant authorities including the Financial Conduct Authority, added that “sellers, customers and shareholders should be assured that the business continues to operate as normal.”

Sommerton, a former intellectual property lawyer who was appointed CEO in 2022, told Reuters he was surprised and disappointed by the allegations.

He said: ‘I am confident I will be proven right and will avoid further comment at this time to allow the process to take its course.’

Chill Brands will report the findings of the investigation ‘in due course’.

The investigation is the latest blow to Chill Brands, which saw its share price plummet in January after the Prime Minister unveiled a ban on disposable vape products.

Chill Brands lost almost a third of its value at the time, 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.

After gaining ground since the January sell-off, Chill Brands shares fell a further 18.3 per cent to 2.58p in early trading on Monday.

Chill Brands, which is trying to boost growth through a nicotine-free vaping project, has now lost more than 97 percent of its value since its all-time high share price of 98 cents in March 2021.