REG - Summerway Cap PLC - First Day of Dealings

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28/03/2022 08:15

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RNS Number : 2045G  Summerway Capital PLC  28 March 2022

28 March 2022

 

Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc)

 

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

 

Admission to AIM and First Day of Dealings

 

 

Following completion of the acquisition of Vertigrow Technology Ltd, Summerway
Capital Plc (AIM: SWC) (renamed as Celadon Pharmaceuticals Plc), now a
UK-based pharmaceutical company targeting the research, cultivation,
manufacturing and supply of cannabinoid-based medicines, announces the
admission of its enlarged issued ordinary share capital to trading on AIM, a
market operated by the London Stock Exchange plc at 8.00am today
("Admission"). The change of name on the London Stock Exchange from Summerway
Capital Plc to Celadon Pharmaceuticals Plc and a new ticker code is expected
to take effect on 29 March 2022.

 

Highlights

 

·      Celadon's goal is to become the provider and partner of choice
for pharmaceutical cannabinoid-based medicines in the highly regulated UK
market and is initially focusing on the chronic pain market.

 

·      Celadon is believed to be one of the first pharmaceutical
companies in the UK to receive a Home Office licence, following approval from
the Medicines and Healthcare products Regulatory Agency ("MHRA") to apply for
the licence, allowing it to grow high tetrahydrocannabinol ("THC") medicinal
cannabis.

 

·      The Group has a 100,000 square foot facility located in the
Midlands, UK, that comprises a laboratory designed to meet UK-GMP standards,
with capacity for a large indoor hydroponic growing facility in accordance
with GACP guidelines.

 

·      The Group's organic strategy is to facilitate access to
cannabinoid-based medicines by undertaking trials, documenting and sharing the
resulting data and educating physicians. Following receipt of the relevant
UK-GMP authorisation from the MHRA, and a new licence from the Home Office,
Celadon intends to cultivate and manufacture active pharmaceutical ingredient
("API") from its own facilities for sale to the UK manufacturing market. The
Group will also form partnerships with other parties seeking to manufacture
cannabinoid-based medicines.

 

·      The Group has an emerging portfolio of partner companies across
therapeutic indications, with a majority shareholding in LVL Health chronic
pain clinic and a minority stake in Kingdom Therapeutics, an early-stage
biopharmaceutical company developing a cannabinoid-based licensed medicine for
autism spectrum disorder.

 

·      At full capacity, the Group's current facility could supply up to
circa 50,000 patients, which has the potential to generate revenue of £90
million per annum with EBITDA margins of approximately 50 per cent.

 

·      Celadon operates within a highly regulated market with
substantial growth potential, benefiting from positive tailwinds and strong
regulatory and operational barriers to entry, which include its integrated
supply chain. The UK Government estimates that there are 3 million chronic
pain sufferers in UK that could be eligible for a prescription of cannabinoids
on the National Health Service ("NHS") 1 .

·      The Group's subsidiary, LVL, owns a MHRA conditionally approved
trial using a cannabis based medicinal product to treat chronic pain. The
Directors believe, if it shows safety and efficacy, the trial has the
potential to provide a robust data set and an opportunity to present such data
to the National Institute for Health and Care Excellence ("NICE") that may
enable it to recommend the type of medicinal product studied in the Trial for
prescription on the NHS, for the uses studied in the Trial.

As set out in the Admission Document, James Short, Alexander Anton, Kathleen
Long, Robert Barr and Dr Steven Hajioff have today been appointed to the board
of directors of the Company, and Benjamin Shaw has stepped down. The change of
name on the London Stock Exchange from Summerway Capital Plc to Celadon
Pharmaceuticals Plc and a new ticker code is expected to take effect on 29
March 2022.

 

Admission follows a placing by Canaccord Genuity and a subscription to certain
investors for a total of 5,151,516 ordinary shares at 165 pence per ordinary
share, raising gross proceeds of £8.5 million, before expenses. Based on the
closing share price on 25 March 2022, being 158 pence, the Group will have a
market capitalisation on Admission of £97.4 million.

 

Following Admission, the number of Ordinary Shares in issue and admitted to
trading on AIM will be 61,669,773.

 

This figure of 61,669,773 Ordinary Shares may be used by shareholders in the
Company as the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.

 

Canaccord Genuity acted as Nominated Adviser, Broker and Bookrunner in
relation to the Fundraising and Admission.

 

James Short, Chief Executive Officer, commented: "Today marks a huge milestone
for Celadon, following our  successful equity fundraise. Celadon is focused
on putting the patient first. I frequently talk to patients who have used
cannabinoid-based products for chronic pain, and other illnesses; I know how
life-changing this can be for patients who are most in need in society.
Celadon is excited to be at the forefront of the sector and has huge ambitions
to take the business forward. I would like to personally welcome our new
investors and thank them, and the original investors, for their trust in me
and our incredible team. I look forward to updating the market with further
developments in due course."

 

For the purposes of UK MAR, the person responsible for arranging for the
release of this announcement on behalf of the Company is James Short, Chief
Executive Officer of the Company.

 

The Company's Admission Document, as well as other information required
pursuant to AIM Rule 26, is available on the Company's website at
www.celadonpharma.com (http://www.celadonpharma.com) . Defined terms have the
same meaning as set out in the Company's Admission Document.

 

The Company's ISIN is GB00BDQYGP38, SEDOL is BDQYGP3 and AIM TIDM is SWC.

 

 

 Enquiries:
 Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc)
 Mo Noonan                                                  07876444977

 Canaccord Genuity Limited (Nominated Adviser and Broker)
 Andrew Potts / Patrick Dolaghan                            020 7523 8000

 

About Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc)

 

Following completion of the acquisition of Vertigrow Technology Ltd
("Celadon"), Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc) is
a UK based pharmaceutical company targeting the research, cultivation,
manufacturing and supply of cannabinoid-based medicines. Its primary focus is
on improving quality of life for chronic pain sufferers, as well as exploring
the potential of cannabinoid-based medicines for other conditions such as
autism. Its UK facility comprises a laboratory designed to meet UK-GMP
standards, and capacity for a large indoor hydroponic growing facility that
has received a Home Office Licence to legally grow high THC medicinal cannabis
for the purpose of producing test batches of cannabis oil to support its
application to the MHRA. The Company's subsidiary, LVL, owns a MHRA
conditionally approved cannabis trial using cannabis based medicinal products
to treat chronic pain in the UK.

 

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

 

 1  The UK Review of Medicinal Cannabis. April 2020

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