Celadon Pharmaceuticals Plc

("Celadon" or the "Company")

New Sales Contract with UK Pharmaceutical Company

London, 5 September 2023 - Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, announces that it has entered into a new contract for the commercial sale of its cannabis product with a second UK pharmaceutical company customer that the Company anticipates could generate up to £1.2 million in revenue.

The Company anticipates that the first shipment will be made in Q4 2023. The contract will run over a three year term, with both parties retaining the option to extend for a further two years subject to mutual agreement.

In May 2023 Celadon signed its inaugural supply contract with a leading UK medicinal cannabis company. Under the terms of that contract, the company will supply a minimum of £3 million worth of product over the next three years.

Both contract wins underscore demand for domestic product in the UK and further confirm the Company's belief that UK production has a significant advantage over imported product, which can suffer from a plethora of regulatory and logistical challenges.

The Company continues to receive further expressions of interest in the supply of its pharmaceutical-grade cannabis product, and is currently in discussions to convert these into commercial contracts. With Phase 1 of the facility now fully contracted, the Directors have growing confidence in continuing to expand the production capacity of the site.

James Short, Chief Executive Officer of Celadon, said:

"We are very happy to have signed a second sales contract with a new customer so soon after the first. Demand for our product continues to grow, and converting this interest into commercial sales remains our top priority.

"Customers are choosing to come to Celadon as a trusted provider of UK-produced, high-quality product. Many businesses are facing regulatory and logistical challenges when trying to import medicinal cannabis product into the UK, and therefore are willing to pay premium prices to secure Celadon's domestically produced product."

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About Celadon Pharmaceuticals Plc

Celadon Pharmaceuticals Plc is a UK based pharmaceutical company focused on the research, cultivation, manufacturing, 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 manufacturing and an analytical and R&D laboratory. Celadon's Home Office licence allows for the commercial supply of its GMP pharmaceutical 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.co.uk

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.