Shares in Celadon Pharmaceuticals PLC (AIM: CEL) plummeted 50% in early trading due to delays in accessing £1.3 million of funding.
The Company’s cash position as of 9 August 2024 is £48k. This sum is expected to increase shortly once the remaining proceeds of the subscription and the funds due under the drawdown are received.
As set out in the Company’s full-year results announcement on 14 May 2024, the Group’s going concern over the next 12 months is dependent on the receipt of funds under the equity fundraising and the committed credit facility.
James Short, Chief Executive Officer of Celadons, commented:
“Celadon continues to make good operational progress, including the recent supply of our cannabis Active Pharmaceutical Ingredients to UK Specials Manufacturers for supply to UK Private Pain clinics, which is reflected in positive discussions with potential lenders about substantial new, longer-term debt facilities.
“Whilst there have been delays in receiving funding, both the investor and lender have re-confirmed their commitments to, and support for, the Company.”
