CEL Celadon Pharmaceuticals Plc

Celadon Pharmaceuticals Plc

("Celadon" or the "Company")

New Committed Credit Facility

London, 26 February 2025 - 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 £1.95 million (gross), three year secured committed credit facility with a Swiss-based individual lender (the "Lender") (the "Facility").

The Facility is secured by a floating charge over all of Celadon's assets. The 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 Facility also contains customary events of default.

Any drawn balances under the Facility will attract a fixed interest rate of 10 per cent. per annum and payable quarterly, and the Facility will be repaid  and cancelled on the earlier of a financing sufficient to repay the Facility in full (either debt or equity), on a change of control or expiry of the Facility. Celadon may not reborrow any part of the Facility which is prepaid.

Under the terms of the Facility, Celadon is permitted to use the proceeds for general corporate purposes including funding of working capital, capital expenditure and up to £0.45m in fees, costs and expenses related to entry into the Facility. The Board however expects the final fees to be substantially below this level .

The Facility is in addition to the existing unsecured £7.0m committed credit facility (the "Existing Facility"). As part of entering into the 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 £7.0million 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.

Alongside entering into the Facility, the Company has delivered a utilisation request in order to draw down funds available under the Facility. Under the terms of the Facility, the Lender has up to 15 business days from the request date to make funds available (subject to customary debt facility conditions being met by Celadon).

Following the receipt of cash as announced by Celadon on 12 February 2025, the Company had sufficient cash up to April 2025. The Directors believe that taking into account funds now available through the Facility the Company now has sufficient working capital through to Q3 2025. Further details of the Company's financial position will be set out in the Company' annual report and accounts for the year ended December 2024.

James Short, Founder and Chief Executive Officer of Celadon said:

"We are pleased to have secured funding through the Facility at such an important time in the Company's growth journey.  This Facility will support the growth in our operations to meet the growing interest in Celadon's product.

"The additional flexibility that this brings to the Group will enable us to support supply to our existing customers."

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About Celadon Pharmaceuticals Plc

Celadon Pharmaceuticals Plc is a UK-based pharmaceutical company focused on the development, production 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 an analytical and R&D laboratory. Celadon's Home Office licence allows for the commercial supply of its pharmaceutical-grade 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.com

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.