Celadon Pharmaceuticals this week passed a ‘significant milestone’ as it completed its first ever supply delivery to clients, just days after the successful completion of a £2m fundraise through a placement of new ordinary shares.
The AIM-listed medical cannabis operator issued 1.7m new shares at a price of 115p per share, which are expected to be admitted to AIM on December 18.
This comes as the company continues to seek further funding through the issuance of convertible loan notes, aiming to raise funds ‘in addition to the net proceeds received by the company’ via its share issue.
According to the company: “Subsequent to the expressions of interest received from potential investors at the time of CLN Financing announcement (October 13), additional potential investors have expressed an interest in subscribing for the Convertible Loan Notes and the directors are pleased with progress to date.”
Celadon says the funds will be used to accelerate the expansion of fitting out Phase 2 of its Midlands production facility, alongside ‘additional working capital’.
It comes as the company gears up to begin trading in earnest after signing three separate supply agreements with companies throughout Europe.
Yesterday, the company announced that it has now completed ‘the first supply of its pharmaceutical-grade product’, with expectations to begin supply for its third in early 2024.
Its first two commercial supply contracts, signed in May and September respectively, are set to be worth around £4.2m collectively over their multi-year terms
In November, Celadon announced signed a third ‘commercial supply agreement’ with an unnamed ‘leading European medical cannabis company’, set to generate revenues of £26m for Celadon over the deal’s three-year period.
The company said this latest round of funding should deliver it enough capital to see it fund its ongoing operations for at least another 12 months.
“Following the signing of our first three supply contracts this year, and the imminent delivery of the first shipments to our UK customers, we have taken the opportunity to secure £2.0m of additional working capital at an attractive issue price compared to the current one. The Company is now well funded to deliver on its current commitments,” CEO James Short said.
He added in a separate release: “The first supply of our pharmaceutical-grade product is a very significant milestone for both Celadon and the wider industry. It has taken four years of hard work from our incredible team to get here.”
Akanda has announced the appointment of a new Chief Financial Officer (CFO) less than a year after its former CFO was instated.
On December 4 Charn Deol, ‘financial market’ veteran and President of Spiral Investment Corp was appointed as Akanda’s new CFO, marking his apparent entrance into the cannabis industry.
Mr Deol reportedly has 35 years experience in financial markets and has been in management roles in a number of Canadian companies including Bayridge Resources, Amber Brands and Green Battery Minerals.
He replaces Shailesh Bhushan, who like the company’s ‘interim’ CEO Kathryn Field also holds a position at Halo Collective as Chief Accounting Officer, according to his LinkedIn profile.
Ms Field said: “We welcome Charn to the team. This is a transitional yet promising time for Akanda as we look to participate in the early-stage European and worldwide cannabis markets. His experience managing public companies will provide the team with the requisite guidance needed to navigate this phase of our business.”
Mr Deol will have his work cut out to bring the company’s finances into the black following a difficult financial year and a rapidly approaching deadline to bring its stock price back above $1 or face delisting from the NASDAQ.
The US multistate operator, which also has a significant presence in Europe via its Curaleaf International subsidiary, is set to launch its stock on the Toronto Stock Exchange (TSX) today.
In a press release, Curaleaf said its uplisting marked an ‘incredible day not just for our company, but the entire global cannabis industry’, and that inclusion into indexes like the TSX and the MSCI would provide ‘significantly higher access to an even broader set of institutional investors’.
From today, its stock will trade under the ticker ‘CURA’ after being delisted from the Canadian Securities Exchange yesterday.
It comes amid further changes to its European operations, as Sapphire Clinics, a subsidiary of Curaleaf International, announces today that it has rebranded as Curaleaf Clinic.
From January 8, 2024, Sapphire, one of the UK’s leading medical cannabis clinics, will change its name to enable Curaleaf to ‘present a more unified narrative to patients and healthcare professionals’.
Mikael Sodergren, co-founder of Sapphire Clinics and Chief Medical Officer at Curaleaf International says: “We first joined the Curaleaf family almost two years ago and are proud of what we’ve achieved together. Rebranding Sapphire Clinics as Curaleaf is the logical next step and allows us to convey our story more effectively and transparently to our patients.
“The future of medical cannabis in the UK is extremely promising. While marking a new chapter for us, our dedication to exceptional medical care remains unchanged. The Clinic deeply appreciates the continued trust and support of its staff, patients, and the wider medical community.”