REG - Celadon Pharma. PLC - New Committed Credit Facility

Celadon PharmaceuticalsAnnouncement

11/06/2025 07:00

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RNS Number : 2900M  Celadon Pharmaceuticals PLC  11 June 2025

11 June 2025

 

Celadon Pharmaceuticals Plc

("Celadon" or the "Company")

New Committed Credit Facility

 

London, 11 June 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 further to
the 6 June 2025 announcement, it has entered into a new £0.5 million (gross)
one year unsecured  credit facility with a European based high net worth
individual lender (the "Lender") (the "New Facility") and has received funds
totalling £0.5 million.

New Facility

 The New 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 New Facility
also contains customary events of default.

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

Under the terms of the New Facility, Celadon is permitted to use the proceeds
for general corporate purposes including funding of working capital, capital
expenditure and fees, costs and expenses related to entry into the New
Facility.

Following the receipt of the funds under this New Facility, the Directors
believe the Company will have sufficient cash into July 2025 dependent upon
receiving further funding and continued creditor and stakeholder support.

Existing Facility

The New Facility is in addition to the existing unsecured £7.0 million
committed credit facility (the "Existing Facility"). As part of entering into
the New 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 £7.0
million 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.

As announced on 6 June 2025, the Company has been unable to obtain funding
under its Existing Facility and the directors no longer expect to receive
funds under this facility in the near future.

Additional Funding

The Company continues to be engaged with a further finance provider who has
concluded due diligence and who has indicated he is in the process of making
funds available.

Delisting

As most recently disclosed in the 24 March 2025 announcement, the Company
remains committed to proceeding with a cancellation of trading of the
Company's ordinary shares on AIM but only once it has secured further funding
and it will provide a further update in due course.

James Short, Founder and Chief Executive Officer of Celadon said

"Firstly, I would like to thank our team and our loyal shareholders for their
patience. It has been a challenging few weeks, as we have had to revisit our
short term funding requirements following our 8 April 2025 announcement.

Despite the recent funding challenges, from an operational point of view, we
are pleased with progress."

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)      +44 (0)20 7048 9400
 James Sheehan

 

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
(http://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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