Chill Brands Group PLC on Monday announced the launch of an investigation and suspension of Chief Executive Officer Callum Sommerton.

The Colorado, US-based provider of tobacco alternative products said the suspension of Sommerton, who has lead the company since 2022, comes after allegations were made relating to the use of inside information.

Shares in the company fell 18% to 2.59 pence each in London on Monday morning.

Fieldfisher LLP has been hired by the company to carry out the investigation in coordination with relevant authorities including the UK Financial Conduct Authority.

‘This suspension does not constitute disciplinary action or a disciplinary penalty and does not imply any assumption that Sommerton is guilty of any misconduct or that any decision has been made,’ said Chill Brands.

The process to appoint an interim replacement is underway.

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