REG - Celadon Pharma. PLC - Fundraise, RCF Extension, Termination of CLN & TVR

Celadon PharmaceuticalsAnnouncement

10/05/2024 07:00

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RNS Number : 8870N  Celadon Pharmaceuticals PLC  10 May 2024

Celadon Pharmaceuticals Plc

 

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

 

Fundraise, Revolving Credit Facility Extension, Termination of Convertible
Loan Note Financing and Total Voting Rights

 

London, 10 May 2024 - Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based
pharmaceutical company focused on the development, production and sale of
breakthrough cannabis-based medicines, is pleased to announce that it has
raised £2.1m (the "Fundraise") through a placing and subscription of
2,000,000 new ordinary shares of 1 pence each in the Company ("New Ordinary
Shares"). The New Ordinary Shares will be issued at a price of 105 pence per
share (the "Fundraise Price"), which represents a premium of approximately 3.4
per cent to the previous day closing share price of 101.50 pence per share on
9 May 2024, being the last practicable date prior to the publication of this
announcement.  714,286 of the shares are to be issued in monthly instalments
until August 2024.

 

Application will be made for admission of the New Ordinary Shares to trading
on AIM, with 1,285,714 of the New Ordinary Shares to be admitted initially
(the "First Admission"). It is expected that First Admission will occur on or
around 15 May 2024, with the remaining 714,286 shares being admitted in three
instalments on 10 June, 15 July and 12 August 2024.  Further updates will be
provided following the admission of the 714,286 New Ordinary Shares to trading
on AIM.

 

The Company's pre-existing authority to allot ordinary shares, granted at
the 2023 AGM, is sufficient to allot the New Ordinary Shares.

 

Global Investment Strategy UK Limited assisted in the placing.

 

Extension of Committed Credit Facility

 

The Company is pleased to confirm that it has extended the expiry date of its
£7m Committed Credit Facility, entered into in May 2023, from 30 May 2025 to
30 November 2025, on the same terms as announced on 30 May 2023.

 

Use of Proceeds

 

The proceeds of the Fundraise, will provide the Company with additional
working capital. The Directors can confirm that having regard to the proceeds
of the Fundraise and the £7m Committed Credit Facility available to the
Group, the working capital available to the Company will be sufficient for its
present requirements, that is for at least 12 months from the date of First
Admission.

 

Update on Convertible Loan Note Financing

The Company previously announced on 13 October 2023 that it was seeking to
raise further funding through the issuance of Convertible Loan Notes ("CLN
Financing").  Given that product supply to customers has commenced, the
recent extension of the £7m Committed Credit Facility, and funds raised from
the issue of equity by the Company, as detailed in this announcement and on 12
December 2023, the Celadon Directors have decided not to pursue the CLN
Financing despite interest from potential investors.

 

Total Voting Rights

 

The Company advises that on First Admission the Company's issued share capital
will consist of 65,494,617 Ordinary Shares, with one voting right each. The
Company does not hold any shares in treasury. Therefore, the total number of
Ordinary Shares and voting rights in the Company will be 65,494,617. This
figure 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 to their interest in, the share capital of the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

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."

 

Enquiries:

 Celadon Pharmaceuticals Plc
 James Short                                                                                                       Via Powerscourt

 Jonathan Turner

 Canaccord Genuity Limited (Nominated Adviser and Broker)
 Bobbie Hilliam / Andrew Potts                                                                                     +44 (0)20 7523 8000

 Global Investment Strategy UK Limited (Joint Broker)

 James                                                                                                             +44 (0)20 7048 9400
 Sheehan

 Powerscourt Group
 Sarah MacLeod / Nick Johnson / Sam Austrums                                                                       +44 (0)20 7250 1446

About Celadon Pharmaceuticals Plc

Celadon Pharmaceuticals Plc is a UK based pharmaceutical company focused on
the research, cultivation, manufacturing, and sale of breakthrough
cannabis-based medicines. Its primary focus is on improving quality of life
for chronic pain sufferers, as well as exploring the potential of
cannabis-based medicines for other conditions such as autism. Its 100,000 sq.
ft UK facility is EU-GMP approved and comprises indoor hydroponic cultivation,
proprietary GMP extraction and manufacturing and an analytical and R&D
laboratory. Celadon's Home Office licence allows for the commercial supply of
its GMP pharmaceutical cannabis product. The Group owns an approved clinical
trial using cannabis based medicinal products to treat chronic pain in the UK.
Celadon also has a minority interest in early-stage biopharma Kingdom
Therapeutics which is developing a licensed cannabinoid medicine to treat
children with Autism Spectrum Disorder.

 

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

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

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