Having acquired Vertigrow Technology in a deal valuing it at around £80m, AIM cash shell Summerway Capital has renamed as Celadon Pharmaceuticals.
The move creates the biggest cannabis business to list on the AIM market for several years.
Celadon is now operating as a UK-based pharmaceutical company targeting the research, cultivation, manufacturing and supply of cannabinoid-based medicines.
Its goal is to become the provider and partner of choice for pharmaceutical cannabinoid-based medicines in the highly regulated UK market and is initially focusing on the chronic pain market.
It is among the first UK pharma firms to receive a Home Office licence, following approval from the Medicines and Healthcare products Regulatory Agency to apply for the licence, allowing it to grow high tetrahydrocannabinol medicinal cannabis.
CEO James Short said: “Celadon is focused on putting the patient first. I frequently talk to patients who have used cannabinoid-based products for chronic pain, and other illnesses; I know how life-changing this can be for patients who are most in need in society.
“Celadon is excited to be at the forefront of the sector and has huge ambitions to take the business forward. I would like to personally welcome our new investors and thank them, and the original investors, for their trust in me and our incredible team. I look forward to updating the market with further developments in due course.”
It has a 100,000 square foot facility in the Midlands, comprising a laboratory designed to meet UK-GMP standards, with capacity for a large indoor hydroponic growing facility in accordance with GACP guidelines.
The company aims to “facilitate access to cannabinoid-based medicines by undertaking trials, documenting and sharing the resulting data and educating physicians”.
Following receipt of the relevant UK-GMP authorisation from the MHRA, and a new licence from the Home Office, Celadon intends to cultivate and manufacture active pharmaceutical ingredient from its own facilities for sale to the UK manufacturing market.
The group will also form partnerships with other parties seeking to manufacture cannabinoid-based medicines.
The firm has a majority shareholding in LVL Health chronic pain clinic and a minority stake in Kingdom Therapeutics, an early-stage biopharmaceutical company developing a cannabinoid-based licensed medicine for autism spectrum disorder.
At full capacity, it aims to supply up to 50,000 patients, which has the potential to generate revenue of £90m per annum with EBITDA margins of approximately 50 per cent.
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