Celadon Pharmaceuticals faces potential administration

Published 30/05/2025, 18:12
Celadon Pharmaceuticals faces potential administration

LONDON - UK-based Celadon Pharmaceuticals Plc (AIM:CEL), a company specializing in cannabis-based medicines, has reported a precarious financial position today. The firm previously indicated on April 30, 2025, that it had enough capital to operate into May 2025 while it sought additional funds.

Currently, Celadon has been unable to secure further financing through its existing credit arrangements and does not anticipate obtaining funds from this source in the foreseeable future. Despite this setback, the company has been in discussions with a new financier, who has completed due diligence and has expressed intent to provide funding.

As it stands, the company’s operational continuity hinges on the receipt of these new funds, alongside ongoing support from creditors and stakeholders. Without the infusion of capital in the immediate future, Celadon’s directors may be compelled to place the company into administration to safeguard the interests of all parties involved.

Should the company manage to secure the necessary funding, it plans to proceed with the cancellation of trading of its ordinary shares on the Alternative Investment Market (AIM). Celadon will provide additional updates when relevant. This situation underscores the financial challenges faced by firms in the pharmaceutical sector, particularly those involved in the emerging field of cannabis-based treatments.

The information in this article is based on a press release statement from Celadon Pharmaceuticals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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