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Vaping companies took a massive hit in their share prices on Monday morning as the government announced e-cigarettes are to be banned in Britain.
Prime minister Rishi Sunak is to announce the plan, aimed at protecting children’s health due to the meteoric rise in vaping among young people, during a visit to a school this morning,
Share prices for vape company Chill Brands slid by as much as 35 per cent in early trading with the brand’s market value dropping by over £3 million as a result.
Meanwhile its competitor Supreme saw shares drop by around 12 per cent, knocking a huge £10 million off its valuation.
The announcement forms part of the 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.
New data shows the number of children vaping has tripled in the last three years with a significant proportion (nine per cent) of 11 to 15-year-olds using the devices, while the number of 11 to 17-year-old vapers increased almost ninefold in the last two years.
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”.
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