New European Sales Contract

Celadon Pharmaceuticals PLC

16 November 2023

 

Celadon Pharmaceuticals Plc

("Celadon" or the "Company")

New Sales Contract with European Medicinal Cannabis Company

London, 16 November 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 contract for the commercial supply of its pharmaceutical-grade cannabis product with a leading European medicinal cannabis company.

The contract has the potential to generate revenue to Celadon of up to £26 million of product (£8.7 million annually) over the three year term, with the first delivery anticipated in H2 2024. The two parties retain the option to extend the contract for a further two years by mutual agreement.

This latest sales contract follows the two previous UK contracts announced in May and September 2023 respectively.

The level of interest in Celadon's product from European medicinal cannabis companies highlights, the Directors believe, the material benefits of indoor, fully controlled hydroponic cannabis cultivation, and its significant quality advantages over other forms of cultivation, such as glasshouse or outdoor facilities.

The Directors believe that Celadon is one of a limited number of companies globally with the approvals in place to cultivate and manufacture EU-GMP grade high-THC medicinal cannabis.

Celadon continues to receive further expressions of interest in the supply of its pharmaceutical-grade product, and the Company is currently in discussions to convert these into commercial contracts.

James Short, Chief Executive Officer of Celadon, said:

"This is our third sales contract in six months, and our most significant to date. It continues our strong momentum and path to meaningful revenue generation.

"Our customers continue to highlight the multiple challenges they face in securing high quality product, and this contract validates our strategy of manufacturing to the highest standards of pharmaceutical-grade cultivation and production.

"We are greatly encouraged by the growth we are seeing in UK and European end markets and are well-placed to secure additional contracts in the coming months."

Enquiries:

Celadon Pharmaceuticals Plc
James Short Arthur Wakeley Jonathan Turner	Via Powerscourt
Canaccord Genuity Limited (Nominated Adviser and Broker)
Bobbie Hilliam / Andrew Potts	[phone]
Global Investment Strategy UK Limited (Joint Broker) Callum Hill	[phone]
Powerscourt Group
Sarah MacLeod / Nick Johnson / Sam Austrums	[phone]

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.

 

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