A pharmaceutical firm focused on the research, cultivation, manufacturing, and sale of breakthrough cannabis-based medicines has entered into a £7m credit facility.
Celadon Pharmaceuticals, based in the West Midlands, has secured a two-year deal with a UK-based high-net-worth investor and current (below 3%) shareholder in the company.
Under the terms of the credit facility, Celadon is able to use funds for general corporate purposes (including funding capital expenditure). It will increase the group’s working capital following its £3m inaugural contract win for the commercial supply of its pharmaceutical-grade high-THC cannabis product with a leading UK medicinal cannabis company.
Under the terms of the contract, Celadon will sell a minimum of £3m worth of product over the next three years, with the first shipment expected in Q4 2023. At the end of the three years, the contract can be extended for a further two years with the mutual agreement of the parties.
Celadon has also received several expressions of interest in the sale of its pharmaceutical-grade product. The firm says it is currently in discussions to convert these into commercial contracts.
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