Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical company focused on the research, cultivation, manufacturing, and sale of breakthrough cannabis-based medicines, announces that further to the 6 June 2025 announcement, it has entered into a new £0.5 million (gross) one year unsecured credit facility with a European based high net worth individual lender (the “Lender”) (the “New Facility”) and has received funds totalling £0.5 million.
New Facility
The New Facility has no financial covenants save for the provision of certain financial information and a customary negative pledge around future indebtedness and restrictions on customary corporate activity including a sale of the business, payment of dividends, buybacks and substantial changes in the business, while the credit facility remains outstanding. The New Facility also contains customary events of default.
Any drawn balances under the New Facility will attract a fixed interest rate of 10 per cent. per annum payable quarterly, and the New Facility will be repaid and cancelled on the earlier of a financing sufficient to repay the New Facility in full (either debt or equity), a change of control or expiry of the New Facility. Celadon may not reborrow any part of the New Facility which is prepaid.
Under the terms of the New Facility, Celadon is permitted to use the proceeds for general corporate purposes including funding of working capital, capital expenditure and fees, costs and expenses related to entry into the New Facility.
Following the receipt of the funds under this New Facility, the Directors believe the Company will have sufficient cash into July 2025 dependent upon receiving further funding and continued creditor and stakeholder support.
Existing Facility
The New Facility is in addition to the existing unsecured £7.0 million committed credit facility (the “Existing Facility”). As part of entering into the New Facility the Company obtained a waiver from the Existing Facility provider to prevent any funds drawn down under the Facility being used to repay the Existing Facility. In return the Company committed to the Existing Facility provider that the Company’s total indebtedness cannot exceed £7.0 million for the term of the Existing Facility. The Company has currently drawn down £1.0 million under the Existing Facility which is repayable by 30 November 2025.
As announced on 6 June 2025, the Company has been unable to obtain funding under its Existing Facility and the directors no longer expect to receive funds under this facility in the near future.
Additional Funding
The Company continues to be engaged with a further finance provider who has concluded due diligence and who has indicated he is in the process of making funds available.
Delisting
As most recently disclosed in the 24 March 2025 announcement, the Company remains committed to proceeding with a cancellation of trading of the Company’s ordinary shares on AIM but only once it has secured further funding and it will provide a further update in due course.
James Short, Founder and Chief Executive Officer of Celadon said
“Firstly, I would like to thank our team and our loyal shareholders for their patience. It has been a challenging few weeks, as we have had to revisit our short term funding requirements following our 8 April 2025 announcement.
Despite the recent funding challenges, from an operational point of view, we are pleased with progress.”
Enquiries:
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Celadon Pharmaceuticals Plc |
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James Short |
Via Canaccord Genuity Limited |
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Canaccord Genuity Limited (Nominated Adviser and Broker) |
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Bobbie Hilliam / Andrew Potts
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+44 (0)20 7523 8000 |
