REG - Celadon Pharma. PLC - Update on Financial Position

Celadon PharmaceuticalsAnnouncement

18/11/2024 07:00

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RNS Number : 5859M  Celadon Pharmaceuticals PLC  18 November 2024

Celadon Pharmaceuticals Plc

("Celadon", the "Group" or the "Company")

Update on Financial Position

London, 18 November 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.

In its interim results, published on 30 September 2024, the Company advised
that it was owed £0.4 million from a historic subscription and £0.7 million
due from a £1m draw down on its Committed Credit Facility provider (the
"Lender"), and that it only had sufficient cash resources to finance its
working capital requirements through to December 2024.

On 14/15 November 2024, the Company received a further £0.2 million draw down
from the Lender.  The Company continues to receive confirmation from the
Lender, and parties connected to the Lender, that he is committed to providing
the remainder of the £0.5 million due under the £1m draw down.

The Lender has made the Company aware that receipt of the remaining funds due,
and any additional funds that the Company may wish to draw down beyond that
already requested under the Committed Credit Facility, is conditional on the
Lender realising funds from the sale of an investment (as previously
disclosed). The Lender has advised that this sale is expected to complete in
due course and thereafter further funds will be provided in line with the
requirements of the Group. The Directors however cannot be certain on the
timing, or the underlying terms of the investment sale, and therefore on the
timing or receipt of funds due.

The Company remains in correspondence with the subscriber who continues to
communicate an intention to pay all monies owed. Again, there cannot be
certainty on the timing of receipt of funds - especially due to the length of
time that has passed since the subscription agreement was entered into, though
the subscriber has indicated that he anticipates being able to make payment in
due course.

The Company's cash position, as at 15 November 2024, was £0.3m. Based on
current internal forecasts, which assumes ongoing careful management of the
cash and creditor position, and assuming expected cash receipts from customer
sales, absent any funds from the subscriber or Lender (as set out above) the
Company has sufficient working capital through to January 2025.

The Company remains in discussions about establishing alternative lending
facilities, as referred to in the interim results of the Company. These
discussions are now with a single finance provider only. The Directors do not
consider these discussions to have progressed materially since the interim
results. The Company however continues to seek to engage to provide longer
term capital to 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

 James Sheehan

 Sodali & Co
 Elly Williamson / Sam Austrums / 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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