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
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.