Vape and CBD products manufacturer Chill Brands Group has said it is “deeply concerned” after its largest single shareholder launched a bid to oust two senior directors.
Jonathan Swann, who holds a 13.45 per cent stake in the London-listed company, is seeking the removal of chief commercial officer Antonio Russo and chief operating officer Trevor Taylor.
He is also seeking the appointment of Graham Duncan and Aditya Chathli as directors through shareholder votes to be staged at an unscheduled general meeting.
In a statement issued to the London Stock Exchange, Chill Brands Group said: “The company is taking legal advice as to the validity of the requisitioner’s letter and a further announcement will be made in due course.”
It added: “Shareholders are advised to take no action at this time. The board is deeply concerned by this situation and stands behind its directors.”
Other major shareholders in Chill Brands Group include Ox Distributing while Russo and Taylor hold stakes of 1.37 per cent each.
Swann increased his stake in the group from 12.05 per cent earlier this week.
The move comes after shares in the group dived as much as 35 per cent in January despite it saying its existing vape products are excluded from government plans to ban disposable vapes.
Chill Brands’ market value fell by over £3m, while rival vape business Supreme also saw shares drop around 12 per cent, wiping £10m off its valuation.
Shares in Chill Brands are currently trading at 3.3p each, giving it a market capitalisation of almost £18m.
The group’s board is also made up of chief executive Callum Sommerton and non-executive directors Eric Schrader and Scott Thompson.
In its half year results, which were released at the end of 2023, the group reported a revenue of £83.3m, up from £19.6m, and pre-tax losses of £1.5m, down from £2.1m.
