Celadon Pharmaceuticals PLC on Wednesday announced it raised money via a fundraise as is decried a funding delay, and announced a new collaboration.

The London-based pharmaceutical company focused on the development, production, and sale of cannabis-based medicines announced a strategic collaboration with Valeos Pharma AS, a Holeby, Denmark-based pharmaceutical company that produces medical cannabis.

The strategic collaboration is for five years for the know-how and licence agreement and for the supply agreement for at least three and up to five years.

‘Celadon will support the operation of Valeos’ new growing rooms to ensure that they deliver on increased yield of the new genetics,’ Celadon said.

Celadon Chief Executive Officer James Short said: ‘Valeos’ interest in Celadon’s cultivation know-how and practices is testament to our position as a premium quality cultivator. Meanwhile, supplying our existing European customer and prospective European customers from Valeos’ Danish facility will be logistically simpler than doing so from the UK, and will allow us to expedite the servicing of our current and prospective European customers.’

Separately, Celadon announces it raised about £1.1 million via placing 2.6 million shares at 40 pence each.

‘The company continues to manage its cash position and creditors tightly, and this has been exacerbated by the delayed funding. The delayed funding is a primary reason for the company proceeding with the equity fundraise as the company has sought to have sufficient cash for its short term cash requirements,’ the firm explained.

On August 23, Celadon had said it experienced delays in expected funding from a historical equity funding round announced back in May. The company continues to talk with the equity subscriber and lender including through the fund raise process, it said.

As at September 10, the company’s cash position was £48,000, which will be pushed to over £1.0 million upon receipt of the fundraise. Celadon expects its cash resources to finance the working capital requirements of the company through to December.

Celadon shares fell 28% to 37.90 pence each on Wednesday afternoon in London.

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