REG - Celadon Pharma. PLC - Update on Financial Position

Celadon PharmaceuticalsAnnouncement

23/08/2024 07:00

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RNS Number : 5015B  Celadon Pharmaceuticals PLC  23 August 2024

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:

 Celadon Pharmaceuticals Plc
 James Short                                                                                    Via Sodali & Co

 Jonathan Turner

 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

 Callum Hill

 Sodali & Co
 Elly Williamson / Nick Johnson                                                                 +44 (0)20 7250 1446

 

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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