Chill Brands Experiences 20% Growth Amid CBD Industry Struggles

Chill Brands up 20% – that remarkable thing, a success in CBD

While many cannabidiol (CBD) companies have been struggling in a difficult market, Chill Brands (LON: CHLL) (OTCQB: CHBRF) seems to be thriving.

Chill Brands’ shares have increased by 20% due to the success of their recent capital raise. While it may seem that more shares equal lower prices, the success of a capital raise depends on the price at which the capital is raised and how it will be used.

Specializing in various types of CBD smokes and chewables, Chill Brands is succeeding in a market where other entrants are losing money. This struggle is due to the oversaturation of new entrants into the market, which leads to an intense level of competition and non-existent profit margins. Additionally, the illegal supply chain is still active in many areas without interference from regulation or taxation.

The value of CBD remains uncertain, as it is still unknown whether it will be considered a passing fad or a long-term trend. Regardless, value lies in brand recognition since the production process is low-cost and straightforward.

Chill Brands was able to raise £2.6 million (before expenses) from a high net worth investor and received supplier approval to accept shares in return for invoices. With the past debts resolved and the infusion of new capital, the question remains whether Chill Brands can successfully market their CBD products, which is heavily dependent on their branding expertise and budget.

Chill Brands Share Price: London Stock Exchange



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