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Celadon Pharmaceuticals Secures New £0.5 Million Credit Facility

Why we think this is good

The new £0.5 million one-year unsecured credit facility provides Celadon Pharmaceuticals with additional funding to support its operations. The terms of the facility seem reasonable, with a 10% fixed interest rate and no financial covenants beyond providing certain financial information. This, combined with the existing £7 million facility, indicates that the company is actively seeking to secure further funding to maintain its business activities.

Key Points

  • Celadon Pharmaceuticals has secured a new £0.5 million one-year unsecured credit facility
  • The new facility has no financial covenants, with a fixed 10% interest rate payable quarterly
  • The new facility is in addition to the existing £7.0 million committed credit facility, of which £1.0 million has been drawn down
  • The company continues to engage with another finance provider who has indicated they are in the process of making funds available

Summary

The pharmaceutical company has secured a new £0.5 million credit facility to support its operations, providing additional funding as it continues to engage with other finance providers.

Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical company focused on the research, cultivation, manufacturing, and sale of cannabis-based medicines, has announced that it has entered into a new £0.5 million (gross) one-year unsecured credit facility with a European based high net worth individual lender. The new 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. The drawn balances will attract a fixed interest rate of 10% per annum payable quarterly, and the facility will be repaid and cancelled on the earlier of a financing sufficient to repay the facility in full, a change of control or expiry of the facility. The new facility is in addition to the existing unsecured £7.0 million committed credit facility, of which the company has currently drawn down £1.0 million.

Key Dates

30 November 2025
Repayment of £1.0 million drawn down under the existing £7.0 million committed credit facility
GENERAL UPDATE