Shares in vaping firms tumbled on Monday morning as disposable vapes are set to be banned in Britain.
Later on Monday, Prime Minister Rishi Sunak is set to announce the plan to implement the ban, which is aimed at tackling the rise in young people vaping and protecting children’s health, during a visit to a school.
Chill Brands Group PLC saw shares slide by as much as 35% in early trading as a result, while rival business Supreme PLC saw shares drop around 12%.
At around 09:20 GMT, Chill Brands shares were down 23% from a day before at 3.00 pence per share, while Supreme shares were 7.6% lower at 97.00p each.
Chill’s market value had fallen by over £3 million, with over £10 million knocked off Supreme’s valuation during the morning trading session.
The announcement forms part of the UK government’s response to its consultation on smoking and vaping, which was launched in October last year.
The ban is expected to come into force at the end of 2024 or the start of 2025.
On Monday, Chill Brands, which makes nicotine-free vapes as well as CBD products, stressed that it is ‘committed to strict compliance with all relevant laws’.
Callum Sommerton, chief executive officer of Chill, said it will continue to sell its products across UK and US retailers but they are prepared to adjust to rule changes.
He said: ‘The vaping landscape is constantly evolving, creating opportunities for businesses that are able to navigate the regulatory environment.
‘The Chill brand has gained rapid traction with the support of major retailers, and I am confident that it will continue to do so as we move forward with our plans to launch reusable pod system vapes.
‘Chill Brands Group is an agile company, and we are prepared to adjust to any legislation that may be enacted.’
Rival Supreme, which has brands including 88Vape, also saw its shares knocked by the announcement.
The company, which has yet to comment on the latest announcement, said in October that it was ‘fully supportive of any further legislation in the sector’.
By Henry Saker-Clark, PA Deputy Business Editor
Press Association: Finance
source: PA
Copyright 2024 Alliance News Ltd. All Rights Reserved.
