THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

11 August 2025

Chill Brands Group plc

("Chill Brands" or the "Company")

Company Update and Lifting of Suspension

Chill Brands, the consumer packaged-goods distribution company, provides an update on its operational progress, financial position and future strategy, and announces that the Company's listing on the Official List Equity Shares (transition) category of the Main Market of the London Stock Exchange has been restored.

The restoration of the listing of the Company's ordinary shares of 1 pence each ("Ordinary Shares") occurred at 7:30am today, 11 August 2025.

Background to the Suspension

The suspension of trading in the Ordinary Shares was implemented on 3 June 2024. Trading in Ordinary Shares remained suspended as the Company completed the audit of its Report and Accounts for the financial year ending 31 March 2024 (the "FY24 results") and subsequently the preparation of its unaudited Interim Results.

Chill Brands completed and published its audited FY24 results on 23 June 2025. This was followed by the release of interim results for the six months to 30 September 2024 on 11 July 2025, and the release of a second set of interim results for the twelve months to 31 March 2025 on 31 July 2025.

The announcement of interim results for the twelve months to 31 March 2025 followed the Company's announcement of a change to its accounting reference date, which has been changed to 30 September. Accordingly, the Company's next audited financial statements will cover the 18-month period ending 30 September 2025 and will be published by 31 January 2026.

Financial position

On 23 May 2025, Chill Brands announced that it had raised a total of £1 million through the issue of convertible loan notes (the "CLNs") and a CLN drawdown facility.  Currently, £477,000 of the CLN drawdown facility remains undrawn. In addition, the Company anticipates receiving a material VAT rebate in the coming months resulting from elevated operating costs including certain exceptional costs incurred during 2024. The Company also has access to an inventory financing facility announced on 20 December 2023.

Based on current circumstances and modelling of various scenarios, the Company expects that its existing cash and financing facilities will support its operations into 2026. Ongoing improvements in trading conditions and incremental revenue growth, particularly from the Chill Connect distribution division, are expected to enhance the Company's financial position.

As detailed in the FY24 financial statements, the Board has modelled a range of trading scenarios, including downside cases that reflect potential delays or disruptions to commercial progress. In such scenarios, the Company has the flexibility to reduce operational expenditure, including staff and marketing costs, and to defer discretionary retail activity, thereby preserving cash and extending the Company's cash runway.

The Company has historically raised capital on a periodic basis and remains confident in its ability to do so if required. Throughout a challenging period, the Board has exercised rigorous financial control and management remains fully committed to taking prudent and timely steps to ensure the Company can continue to trade.

Business overview and strategy

The Company's near-term focus is the expansion of its Chill Connect division, a route-to-market and distribution business that provides a range of services to fast-moving consumer goods ("FMCG") brands.

Chill Connect leverages the retailer relationships, distribution channels and field sales infrastructure originally developed to support the Company's own proprietary vaping products. This capability has now been repurposed to serve third-party brands, allowing Chill Connect to generate multiple streams of revenue including:

·    monthly retainers for brand representation and field sales services;

·    commissions on orders and recurring revenue from brand partners; and

·    margin-based income from conventional buy-and-sell distribution activity.

The division has already secured a number of significant clients in the tobacco alternatives category, notably those offering nicotine pouches and compliant rechargeable vaping products. The UK ban on disposable vapes, effective from 1 June 2025, has not dampened consumer appetite for tobacco alternatives and instead the market has shifted towards quality reusable devices supplied by established brands, which now form a key part of Chill Connect's offering.

The Board is in advanced negotiations with several potential brand partners, including those offering high-demand consumer products in regulated and fast-growing categories. If secured, these agreements are expected to generate significant revenues based on forecasted sales volumes and strong retailer demand, providing a robust platform for further commercial expansion.

In support of this expansion, Chill Brands is also:

·    launching a wholesale ordering portal to enable seamless product discovery and purchasing for retailers;

·    growing its sales team to meet demand and expand geographic coverage; and

·    establishing in-house fulfilment and product storage facilities to reduce reliance on third-party logistics providers, improving both cost efficiency and service flexibility.

Sales volumes within Chill Connect are increasing. While this creates pressure on the Company's working capital due to the need for inventory acquisition, the Company is actively managing this through a number of mechanisms and intends to use its inventory financing facility.

In parallel, the Company continues to invest in the development of its Chill.com e-commerce marketplace. While this channel currently contributes a modest portion of revenue, it remains a longer-term strategic priority. The website has recently been refocused on the UK market, supported by the launch of the Company's first paid advertising campaigns on Meta platforms and the expansion of content to improve visibility and engagement. The Company has also engaged conversion rate optimisation ("CRO") specialists to enhance the purchasing experience. Looking ahead, the platform will benefit from the introduction of internal fulfilment capabilities, which will allow Chill Brands to evolve beyond its current drop shipping model towards a more dynamic and valuable service for partner brands.

Chill.com will require sustained marketing investment to fulfil its potential, but this is being carefully paced to ensure that near-term capital is directed towards higher short-term-impact distribution opportunities.

Having addressed historical issues and re-established a foundation for growth, Chill Brands is now positioned to scale up its operations. While this growth will likely entail further capital requirements, those requirements will be directly linked to revenue-generating activities and commercial opportunity. The Board believes that the path ahead is clear and the Company's potential is significant.

Callum Sommerton, Chief Executive Officer of Chill Brands, commented:

"We are pleased to announce the restoration of the Company's listing, marking a significant moment for Chill Brands Group. While this extended suspension period has undoubtedly been challenging, it has allowed the Company to navigate a difficult chapter, stabilise operations, and emerge with a renewed strategic focus. We deeply appreciate the patience and unwavering support of our shareholders during these testing times.

With the resumption of trading, there are compelling reasons for optimism about the Company's future. Our Chill Connect division is steadily increasing revenue and securing new commercial partnerships, while plans to revitalise Chill.com and strengthen its role within our broader business ecosystem are being enacted.

Chill Brands Group is now well-positioned to execute its refined growth strategy, supported by an expanding network of commercial collaborators who share our vision for a more agile product distribution landscape. As we continue forward, we remain committed to delivering strong, sustainable outcomes and look forward to providing updates as the business progresses."

-ENDS-

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About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is a distribution-led consumer packaged goods company focused on bringing novel fast-moving consumer products (FMCG) to market. The Company specialises in the sale and distribution of tobacco alternatives, functional beverages, and other innovative consumer goods, with a particular emphasis on the convenience store channel. Chill Brands partners with a mix of established FMCG businesses and emerging high-potential brands to provide comprehensive route-to-market solutions. Chill Brands also operates the chill.com e-commerce website, on which it is building a marketplace of products from third-party brands.

Publication on website

A copy of this announcement is also available on the Group's website at http://www.chillbrandsgroup.com