Celadon Pharmaceuticals
Plc
("Celadon", the "Group" or the
"Company")
Update on Financial
Position
London, 23 August 2024 -
Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical
company focused on the development, production and sale of
breakthrough cannabis-based medicines, wishes to provide an update
on its financial position.
On 12 August 2024, the Company
provided an update on its operations and financial position.
In that update the Company advised that it had experienced delays
in expected funding from an equity fundraising round, announced on
10 May 2024, and following the submission of a draw down request on
its Committed Credit Facility.
Equity Fundraise
On 10 May 2024, the Company
announced an equity fundraise to raise £2.1m at a price of 105
pence per ordinary share. It was agreed with one investor that his
new ordinary shares subscribed in the equity fundraise would be
issued in four tranches, namely 238,095 on 10 May 2024 (£250k), and
a further 714,286 ordinary shares being admitted in three
subsequent instalments on 10 June ("Second Admission"), 15 July
("Third Admission") and 12 August 2024 ("Fourth Admission"),
equating to £750k.
The investor subscribed for a total
of £1m of new shares under the equity fundraising, of which £600k
has been received to date, including £100k from the Third
Admission. As a result of the delay in receipt of funds from the
Third Admission, the Company has agreed with the investor that it
will delay the Fourth Admission of 238,096 ordinary shares
(equating to £250k) until such time that
all monies due have been received under the Third Admission. The
Company and the investor continue to maintain positive dialogue and
the investor has re-confirmed his intention to pay the balance due
for the Third Admission (as is legally required under a
subscription agreement), and in due course the full amount due for
the Fourth Admission.
The Company will make a further
announcement, as appropriate, when all funds under the Third
Admission are received and to provide timing on the Fourth
Admission of 238,096 shares.
Committed Credit Facility
On 27 June 2024, the Company
submitted a draw down request for an initial £1m under the terms of
the Committed Credit Facility. As advised in the announcement of 12
August 2024, at close of business on 9th August 2024, the Company
had received £100k from this draw down request. By close of
business on 22 August 2024, a further £200k has been received and
the Company has been advised that the balance of £700k will
continue to be paid in instalments or in full following completion
of a property transaction. The Company has had consistent positive
dialogue with the lender since the draw down and the directors of
the Company continue to be confident of receiving the remaining
draw down proceeds.
The Board also wishes to advise that
the Group continues to be in discussion with a small number of
potential institutional lenders about entering into substantial
longer term debt facilities that would allow the Committed Credit
Facility to be refinanced.
Current Cash Position
The Company continues to manage its
cash position and creditors tightly, and this has been exacerbated
by the delay in receipt of monies from the Third Admission of
equity proceeds and the £1m draw down from the Committed Credit
Facility.
The Company's cash position as at 22
August 2024 is currently £210k. This sum is expected to increase
once the remaining proceeds of the subscription and the funds due
under the draw down are received. The Group's going concern is
dependent on timely receipt of funds under the equity fundraise and
the committed credit facility or alternative financing (which as
yet have not been secured).
James Short, Chief Executive
Officer of Celadon, commented:
"Celadon is grateful to the investor
and lender for their re-confirmed commitments to the Company and
for the additional funds received from the lender.
"The Group's ongoing conversations
with alternative potential lenders continue to progress positively
with a view to securing the long-term future for the
business."
Enquiries:
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Celadon Pharmaceuticals Plc
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James Short
Jonathan Turner
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Via Sodali & Co
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Canaccord Genuity Limited (Nominated Adviser and
Broker)
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Bobbie Hilliam / Andrew
Potts
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+44 (0)20 7523 8000
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Global Investment Strategy UK Limited (Joint
Broker)
Callum Hill
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+44 (0)20 7048 9400
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Sodali & Co
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Elly Williamson / Nick
Johnson
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+44 (0)20 7250 1446
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About Celadon Pharmaceuticals Plc
Celadon Pharmaceuticals Plc is a
UK-based pharmaceutical company focused on
the development, production and sale of breakthrough cannabis-based
medicines. Its primary focus is on
improving quality of life for chronic pain sufferers, as well as
exploring the potential of cannabis-based medicines for other
conditions such as autism. Its 100,000 sq. ft UK facility is EU-GMP
approved and comprises indoor hydroponic cultivation, proprietary
GMP extraction and an analytical and R&D laboratory. Celadon's
Home Office licence allows for the commercial supply of its
pharmaceutical-grade cannabis product. The Group owns an approved
clinical trial using cannabis-based medicinal products to treat
chronic pain in the UK. Celadon also has a minority interest in
early-stage biopharma Kingdom Therapeutics, which is developing a
licensed cannabinoid medicine to treat children with Autism
Spectrum Disorder.
For further information please visit
our website www.celadonpharma.com
This announcement contains inside
information for the purposes of article 7 of the Market Abuse
Regulation (EU) 596/2014 as amended by regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310. With the
publication of this announcement, this information is now
considered to be in the public domain.
