Celadon Pharmaceuticals PLC on Thursday said that it has signed a supply contract with a European medicinal cannabis company.

Celadon is a London-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines. Shares in the firm jumped 31% to 109.00 pence each in London on Thursday morning.

According to Celadon, the contract could potentially generate product revenue of up to £26 million over its three-year term. This would mean a return of £8.7 million annually.

With first delivery anticipated in the second half of next year, Celadon will supply its pharmaceutical-grade cannabis product to a European medicinal cannabis company, which went unnamed. Both parties retain the option to extend the contract for another two years by mutual agreement.

‘This is our third sales contract in six months, and our most significant to date. It continues our strong momentum and path to meaningful revenue generation,’ said Chief Executive Officer James Short.

Short added: ‘Our customers continue to highlight the multiple challenges they face in securing high quality product, and this contract validates our strategy of manufacturing to the highest standards of pharmaceutical-grade cultivation and production.’

Celadon said Thursday that it continues to receive further expressions of interest, and said it was currently in discussions to convert these conversations into commercial contracts.

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