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REG - Celadon Pharma. PLC - £7 Million Committed Credit Facility

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RNS Number : 8843A  Celadon Pharmaceuticals PLC  30 May 2023

 

Celadon Pharmaceuticals Plc

 

("Celadon" or the "Company")

 

£7 Million Committed Credit Facility

 

London, 30 May 2023 - Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based
pharmaceutical company focused on the research, cultivation, manufacturing and
sale of breakthrough cannabis-based medicines, announces that it has entered
into a £7 million, two year committed credit facility with a UK-based high
net worth investor and current (below 3 per cent) shareholder in the Company.

 

Under the terms of the credit facility, Celadon is permitted to use the
facility for general corporate purposes (including funding of capital
expenditure), and its implementation will increase the Group's working capital
headroom in light of the inaugural contract win and expressions of interest
for the sale of Celadon's product, as announced by the Company on 24 May
2023.

 

The credit facility is unsecured and has no financial covenants save for a
customary negative pledge around future indebtedness and restriction on
dividends, while it remains outstanding.  Any drawn balances under the
facility will attract a fixed interest rate of 10 per cent. per annum and
payable quarterly.  The facility will be repaid and cancelled on the earlier
of an equivalent financing (either debt or equity), change of control and two
years from signing.

 

James Short, Founder and Chief Executive Officer of Celadon said:

"We are delighted to have secured the £7 million credit facility at such an
important time in the Company's growth journey. It will support the growth in
our operations to meet the increasing demand for Celadon's product.

 

"With the flexibility that the facility brings to the Group, we continue to
confidently pursue the conversion of expressions of interest for Celadon's
product into formal sale contracts, and build out the underlying operations
required to deliver them."

 

Enquiries:

 Celadon Pharmaceuticals Plc
 James Short                                               Via Powerscourt

 Arthur Wakeley

 Jonathan Turner

 Canaccord Genuity Limited (Nominated Adviser and Broker)
 Bobbie Hilliam / Andrew Potts / Patrick Dolaghan          +44 (0)20 7523 8000

 Powerscourt Group
 Sarah MacLeod / Nick Johnson / Sam Austrums /             +44 (0)20 7250 1446

 Ibrahim Khalil

 

About Celadon Pharmaceuticals Plc

 

Celadon Pharmaceuticals Plc is a UK based pharmaceutical company focused on
the research, cultivation, manufacturing, 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 manufacturing and an analytical and R&D
laboratory. Celadon's Home Office licence allows for the commercial supply of
its GMP pharmaceutical cannabis product. The Company's subsidiary, LVL, owns a
MHRA conditionally-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 licenced
cannabinoid medicine to treat children with Autism Spectrum Disorder.

 

For further information please visit our website www.celadonpharma.co.uk
(http://www.celadonpharma.co.uk)

 

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.

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