Celadon Pharmaceuticals
This morning (November 16), AIM-listed medical cannabis operator Celadon Pharmaceuticals announced that it has signed a new ‘commercial supply agreement’ with an unnamed ‘leading European medical cannabis company’.
Its latest supply deal will last three years and is poised to generate revenues for Celadon of around £8.7m a year, giving it the potential to sell £26m of products during that time.
Set to launch in the second half of 2024, the deal follows two commercial supply contracts it signed with ‘leading pharmaceutical companies’ earlier this year, expected to be worth £4.2m over the coming three years.
The first shipments of both contracts are now expected to be made before the end of the year, while the company says it is currently in discussions to convert ‘multiple expressions of interest’ 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.”
Hemp & Health SA
Polish cannabis firm Hemp & Health published a strategy update for 2024 and 2025 this week, announcing ambitious plans to ‘create and manage a full supply chain of medical cannabis’.
Due to the ‘current state of EU legal regulations’ surrounding CBD, the Warsaw Stock Exchange-listed company says it has no plans to distribute CBD products under its own brand or engage in any crops containing less than 0.3% THC moving forward.
This newly updated strategy will see the company establish its own cultivation operation, which it hopes will help it become a ‘leader in the field’, growing both its own and third-party contracted crops.
Next, it plans to establish its own ‘pharmaceutical plant’ that will be able to ‘grant EU-GMP to products that do not have such status’, mainly from non-European origin, a service it will also offer to third parties.
Through this plant the company plans to import, process, provide packaging services and issue EU GMP certificates, conduct stability tests, and sell its own and white label products.
Hemp & Health will also take charge of distribution via THC Pharma SA, a pharmaceutical wholesaler, with the company stating it does not ‘rule out the possibility of distribution outside Poland’.
To achieve these ambitions over the next two years, Hemp & Health says it plans to ‘acquire a strategic investor’, ‘introduce medical cannabis into the market’, and prepare the business for scalability in the event of ‘legalisation of recreational cannabis in Poland or other European Countries’.
A day after publishing its new strategy, the company announced that it had signed a letter of intent with an unnamed foreign investor, with both parties committing to signing full terms of agreement ‘within seven days’ (November 16).
Cellular Goods, Chill Brands
Two of the UK’s publicly listed consumer cannabis brands announced a tie-up this week, as cannabinoid cosmetics retailer Cellular Goods revealed its products would now be made available through Chill Brands’ online platform.
In a press release published this week, the pair announced that Cellular Goods ‘Look Better’ skincare range would now be sold on Chill.com, which it hopes will enable it to expand awareness of its products in the UK and US.
This is the latest addition to Chill Brands’ retail website Chill.com, which it is thought to have paid £1.3m to acquire last year, which sells a range of its own and third party CBD products, alongside other ‘wellness’ products like nootropics, helping the company embed its refreshed and diversified strategy.
The tie-up is arguably a more significant opportunity for Cellular Goods, which has struggled to achieve any significant sales traction for its CBD products, and has been targeting partnerships to open its products to a wider audience over the last year.
In a further effort to expand its potential sales reach, this morning Cellular Goods announced its products would now ship to Austria, Italy, Portugal and Spain via its own website.
Cellular Goods ‘Interim’ CEO Darcy Taylor, who has now been in position for over a year, said: “This partnership marks another milestone in our strategy to build momentum and activate efficient distribution of the ‘Look Better’ high-end skincare range, delivering revenue growth and long-term shareholder value.”
Like Chill Brands’ relatively new CEO Callum Sommerton, Mr Taylor has pushed the company in a new direction since being in post, following a torrid year for the CBD industry and both companies’ balance sheets in 2022.
This includes the diversification of its operations into the carbon sequestration industry via its acquisition of King Tide Carbon (KTC), which also announced a ‘milestone’ this week that ‘paves the way for carbon dioxide removal credit production’.
KTC has reportedly successfully produced ‘kelp-derived biochar’ with 28% carbon content, a popular carbon sequestration product which is often used by companies to sell carbon credits, presenting a potentially lucrative secondary source of income.
Stenocare
The Danish medical cannabis company this week announced updated guidance ahead of its full Q3 report, informing investors it is now on track to surpass its all time sales records in 2023.
According to the update, Stenocare’s revenues are set to top DKK6.5m (£760k) in 2023, following sales of DKK2.3m in Q3 combined with preliminary guidance of DKK1.7m sales in Q4.
Furthermore, Stenocare says it expects sales to more than double in 2024 to hit DKK15m (£1.76m), ‘leading to a projected break even by the end of the year’.
Its strong performance this year reportedly reflects sales through Denmark’s medical cannabis pilot project, which has seen ‘sell through increase dramatically quarter by quarter’.
However, in 2024, the company not only expects a new product launch in Denmark to boost sales even further, but also anticipates sales in all five of its international markets to bolster revenues.
CEO of Stenocare, Thomas Skovlund Schnegelsberg commented: “Denmark is our home market and clearly our largest market, but it is important to remember, that we have entered several of our markets very recently and the related potential is ready to be turned into business in 2024. This is a strong platform for our growth in the coming years.”
