REG - Celadon Pharma. PLC - New Committed Credit Facility

Celadon PharmaceuticalsAnnouncement

26/02/2025 13:00

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RNS Number : 5744Y  Celadon Pharmaceuticals PLC  26 February 2025

Celadon Pharmaceuticals Plc

("Celadon" or the "Company")

New Committed Credit Facility

 

London, 26 February 2025 - 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 £1.95 million (gross), three year secured committed credit facility
with a Swiss-based individual lender (the "Lender") (the "Facility").

 

The Facility is secured by a floating charge over all of Celadon's assets. The
Facility has no financial covenants save for the provision of certain
financial information and a customary negative pledge around future
indebtedness and restrictions on customary corporate activity including a sale
of the business, payment of dividends, buybacks and substantial changes in the
business, while the credit facility remains outstanding.  The Facility also
contains customary events of default.

 

Any drawn balances under the Facility will attract a fixed interest rate of 10
per cent. per annum and payable quarterly, and the Facility will be repaid
 and cancelled on the earlier of a financing sufficient to repay the Facility
in full (either debt or equity), on a change of control or expiry of the
Facility. Celadon may not reborrow any part of the Facility which is prepaid.

 

Under the terms of the Facility, Celadon is permitted to use the proceeds for
general corporate purposes including funding of working capital, capital
expenditure and up to £0.45m in fees, costs and expenses related to entry
into the Facility. The Board however expects the final fees to be
substantially below this level .

 

The Facility is in addition to the existing unsecured £7.0m committed credit
facility (the "Existing Facility"). As part of entering into the Facility the
Company obtained a waiver from the Existing Facility provider to prevent any
funds drawn down under the Facility being used to repay the Existing Facility.
In return the Company committed to the Existing Facility provider that the
Company's total indebtedness cannot exceed £7.0million for the term of the
Existing Facility. The Company has currently drawn down £1.0 million under
the Existing Facility which is repayable by 30 November 2025.

 

Alongside entering into the Facility, the Company has delivered a utilisation
request in order to draw down funds available under the Facility. Under the
terms of the Facility, the Lender has up to 15 business days from the request
date to make funds available (subject to customary debt facility conditions
being met by Celadon).

 

Following the receipt of cash as announced by Celadon on 12 February 2025, the
Company had sufficient cash up to April 2025. The Directors believe that
taking into account funds now available through the Facility the Company now
has sufficient working capital through to Q3 2025. Further details of the
Company's financial position will be set out in the Company' annual report and
accounts for the year ended December 2024.

 

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

"We are pleased to have secured funding through the Facility at such an
important time in the Company's growth journey.  This Facility will support
the growth in our operations to meet the growing interest in Celadon's
product.

 

"The additional flexibility that this brings to the Group will enable us to
support supply to our existing customers."

 

Enquiries:

 Celadon Pharmaceuticals Plc
 James Short                                               Via Canaccord Genuity Limited

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

 Global Investment Strategy UK Limited (Joint Broker)
 James Sheehan                                             +44 (0)20 7048 9400

 

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.

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