Cannabis-based medicine developer raises over £2m

Cannabis-based medicine developer, Celadon Pharmaceuticals has raised £2.1m to boost its working capital.

Funds have been raised through a placing and subscription of 2,000,000 new ordinary shares of 1 pence each in the company, at a 3.4% premium to May 9 closing share price. It means Celadon has raised £5.1m of equity.

Products are now being supplied to customers through two commercial contracts – one worth £3m and the other £1.2m, following the completion of its latest harvest from a UK-based facility.

It also has extended its £7m credit facility from May 2025 to November 2025 and thanks to both deals, it will no longer pursue CLN Financing (Convertible Loan Notes), despite interest from potential investors.

In November Celadon secured a deal with an undisclosed leading European medicinal cannabis company that has the potential to generate revenue 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, commented: “Following the first shipments to our UK customers in December 2023 and £3.0m of fundraising at the end of 2023, we have taken the opportunity to secure £2.1m of additional working capital at an attractive issue price compared to the current share price. Raising £5.1m of equity in the current environment demonstrates the confidence investors have in Celadon’s strategy and the prospects for the developing pharmaceutical-cannabis industry.

“Celadon has featured extensively in recent mainstream UK broadcast news coverage of the impact medical cannabis has had on a handful of selected patients’ lives.  These stories, and those of many others that have benefitted from medical cannabis, continually reaffirm Celadon’s belief in the potential power of medical cannabis to improve the quality of life for so many more, with millions in the UK alone suffering from chronic pain and other conditions.

“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.”