Business of Cannabis reports
STATEMENT
I am surprised and disappointed by the allegations made against me, which I believe are without merit. I am confident that I will be vindicated. I will avoid further comment at this time to allow the process to progress.
— Callum Sommerton (@callumsomm) April 22, 2024
Chill Brands has seen its share price dive by nearly 40% this week after news emerged that its CEO, Callum Sommerton, had been suspended amid allegations of insider trading.
The shock announcement came just days after the company’s largest investor sent a requisition letter to request a general meeting be called so shareholders could vote on the ousting of two directors.
On Monday (April 22), Chill Brands published an RNS stating that it had now hired law firm Fieldfisher to conduct an independent investigation into allegations surrounding the ‘use of inside information’.
As such, Mr Sommerton, who has helmed the CBD and vaping company since 2022, has been ‘suspended in connection with these allegations’ while the investigation is conducted.
The statement makes it clear that ‘the suspension does not constitute disciplinary action’ and ‘does not imply any assumption’ of misconduct.
Mr Sommerton took to X to address the allegations, stating: “I am surprised and disappointed by the allegations made against me, which I believe are without merit. I am confident that I will be vindicated. I will avoid further comment at this time to allow the process to progress.”
The nature of the allegations, who levelled them, and whether they are connected to last week’s requisition request are currently unclear.
If the requisition request, levelled by Jonathan Mark Swann, who owns 12.58% of the company’s total voting rights, was made legally, the company has 28 days to call a general meeting.
During this meeting, shareholders will vote on whether to oust two American directors, Antonio Russo and Trevor Taylor ‘with immediate effect’, and replace them with two relative unknowns.
The pair have held various senior roles at the company and were co-CEO’s during one of Chill Brands’ most turbulent periods.
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