The chief executive of vape maker Chill Brands has been suspended amid allegations regarding the use of inside information.
London-listed Chill Brands told shareholders on Monday it had enlisted law firm Fieldfisher to investigate the allegations involving boss Callum Sommerton.
Chill Brands said it had started the search for an interim chief executive, but the suspension of Sommerton does not constitute disciplinary action, or imply any assumption of guilt or that any decision has been made.
The vaping firm said the suspension does not constitute disciplinary action, or 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 ‘vendors, customers and shareholders should be assured that the company continues to operate as normal’.
Sommerton, a former intellectual property lawyer appointed as chief executive in 2022, told the 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 run its course.’
Chill Brands will report the investigation’s findings ‘in due course’.
The investigation is the latest blow for Chill Brands, which in January saw its share price hammered after the Prime Minister revealed a ban on disposable vape products.
Chill Brands lost nearly a third of its value at the time, with shares dropping 30 per cent, wiping £4.6million off its value and leaving it with a market capitalisation of just over £12million.
Having regained ground since the January sell-off, Chill Brands shares slumped another 18.3 per cent to 2.58p in early trading on Monday.
Chill Brands, which is trying to drive growth via a nicotine-free vaping project, has now lost more than 97 per cent of its value since its all-time share price high of 98p in March 2021.
