The CEO of vaporizer maker Chill Brands has been suspended amid allegations of insider trading.
London-listed Chill Brands told shareholders on Monday it had hired law firm Fieldfisher to investigate allegations involving its boss Callum Sommerton.
Chill Brands said it had launched a search for an interim chief executive, but Sommerton’s suspension does not constitute a disciplinary measure, nor does it imply any assumption of guilt or that any decision has been made.
The vaping firm said the suspension does not constitute disciplinary action, nor does it imply any assumption of guilt or that any decision has been made.
The group, which is engaging with relevant authorities including the Financial Conduct Authority, added that “suppliers, customers and shareholders should be assured that the business continues to operate as normal.”
Sommerton, a former intellectual property lawyer appointed chief executive in 2022, told Reuters news agency he was surprised and disappointed by the allegations.
He said: “I am confident that I will be vindicated and will avoid further comment at this time to allow the process to take its course.”
Chill Brands will report on the results of the investigation “in due course.”
The investigation is the latest blow for Chill Brands, which saw its share price fall in January after the Prime Minister unveiled a ban on disposable vaping products.
Chill Brands lost almost a third of its value in that time, and its shares fell 30 per cent, wiping £4.6m off its value and leaving it with a market capitalization of just over £12m.
Having regained ground since the January sell-off, Chill Brands Stock fell another 18.3 per cent to 2.58p in early trading on Monday.
Chill Brands, which is trying to drive growth through a nicotine-free vaping project, has now lost more than 97 per cent of its value since its shares’ all-time high of 98p in March 2021.