Celadon Pharmaceuticals PLC on Friday said it will postpone the fourth subscription tranche as it awaits delayed funding but confirmed its cash position should increase in due course.

The London-based pharmaceutical company focused on the development, production, and sale of cannabis-based medicines said its cash balance on August 22 stood at £210,000.

In May, Celadon announced plans for an equity fundraise to raise £2.1 million via the placing of shares at a price of 105 pence each.

Celadon shares rose 31% to 28.87 pence each in London on Friday morning.

One investor subscribed for new shares totalling £1 million with payments taking place over over four tranches beginning in May through to August. So far, £600,000 has been received, including £100,000 from the third admission.

‘As a result of the delay in receipt of funds from the third admission [as announced on August 12], the company has agreed with the investor that it will delay the fourth admission...until such time that all monies due have been received under the third admission,’ Celadon said.

The investor has confirmed his intention to pay the balance due for the third admission as well as the full amount due for the fourth admission.

Additionally, Celadon said: ‘On 27 June 2024, the company submitted a draw down request for an initial £1m under the terms of the committed credit facility. As advised in the announcement of 12 August 2024, at close of business on 9th August 2024, the company had received £100,000 from this draw down request. By close of business on 22 August 2024, a further £200,000 has been received and the company has been advised that the balance of £700,000 will continue to be paid in instalments or in full following completion of a property transaction.’

Once Celadon receives the remaining subscription proceeds and the fund due under the drawdown, the company expects its cash position to increase.

‘The group’s ongoing conversations with alternative potential lenders continue to progress positively with a view to securing the long-term future for the business,’ Celadon added.

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