Cannabis-based medical developer raises £2m

Cannabis-based medicine developer, Celadon Pharmaceuticals has raised £2m to be used as additional working capital following a string of contract wins.

Funds have been raised through a share placing and subscription with new shares offered at 115 pence – a 5.5% premium when compared to the closing share price of 109 pence on December 11.

It comes as Celadon has supplied the first batch of its pharmaceutical-grade product to two commercial contracts – one worth £3m and the other £1.2m. 

The supply of product follows the successful completion of the company’s latest harvest from its UK-based facility, which is being used to fulfil its commercial contracts.

Last month Celadon secured a deal with an undisclosed leading European medicinal cannabis company that has the potential to generate revenue for Celadon of up to £26m of product (£8.7m annually) over a three-year term, with the first delivery anticipated in H2 2024.

James Short, CEO of Celadon, said: “Following the signing of our first three supply contracts this year, and the imminent delivery of the first shipments to our UK customers, we have taken the opportunity to secure £2.0m of additional working capital at an attractive issue price compared to the current one. The Company is now well-funded to deliver on its current commitments.

 “Investor interest in the CLN is encouraging. We look forward to securing further funds to accelerate the fit-out of Phase 2 of the Group’s UK-based indoor hydroponic cultivation facility, and the delivery of our product to our current and future customers. I am grateful for the support shown by our new and existing shareholders as we pursue our primary mission of improving the quality of life for patients most in need.”

Admission of shares is expected to be completed on December 18.