£7 Million Committed Credit Facility
London, 30 May 2023 – 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 it has entered into a £7 million, two year committed credit facility with a UK-based high net worth investor and current (below 3 per cent) shareholder in the Company.
Under the terms of the credit facility, Celadon is permitted to use the facility for general corporate purposes (including funding of capital expenditure), and its implementation will increase the Group’s working capital headroom in light of the inaugural contract win and expressions of interest for the sale of Celadon’s product, as announced by the Company on 24 May 2023.
The credit facility is unsecured and has no financial covenants save for a customary negative pledge around future indebtedness and restriction on dividends, while it remains outstanding. Any drawn balances under the facility will attract a fixed interest rate of 10 per cent. per annum and payable quarterly. The facility will be repaid and cancelled on the earlier of an equivalent financing (either debt or equity), change of control and two years from signing.
James Short, Founder and Chief Executive Officer of Celadon said:
“We are delighted to have secured the £7 million credit facility at such an important time in the Company’s growth journey. It will support the growth in our operations to meet the increasing demand for Celadon’s product.
“With the flexibility that the facility brings to the Group, we continue to confidently pursue the conversion of expressions of interest for Celadon’s product into formal sale contracts, and build out the underlying operations required to deliver them.”