Celadon Pharmaceuticals
UK-listed medical cannabis producer Celadon Pharmaceuticals is struggling to emerge from its precarious financial position after months of turmoil.
In the latest of a string of investor updates on its fiscal position, Celadon said that it ‘has not received the funds requested’ as part of a new credit facility announced on February 26, 2025.
In mid-January, Business of Cannabis reported that, as of November 15, 2024, Celadon had just £0.3m of cash reserves, meaning it only had a guaranteed runway until January 2025, as funding from two separate sources faced continued delays.
Then, on January 31, 2025, Celadon issued an update stating that while it was still waiting on the promised funds, it had enough cash to continue operations until at least March 2025, as long as it received expected payments from customers and maintained support from its creditors.
Two weeks later, on February 12, the final £103,000 from its £1m loan request under its existing credit facility was received, meaning the full amount requested was now in hand, extending its financial runway to April 2025.
Meanwhile, the company announced that it had secured a £389,000 tax credit as part of an R&D (Research & Development) tax claim for the financial year ending December 2022, though this had already been accounted for in its financial records as a deferred tax asset.
It was given a further reprieve on February 26, when it announced the agreement of new loan of £1.95m from a Swiss lender, which will last for three years.
This loan is secured against all of Celadon’s assets, meaning that if Celadon fails to repay, the lender could claim ownership of the company’s assets as repayment.
Celadon almost immediately requested to draw money from the new loan, and the lender had up to 15 business days to provide the funds, as long as Celadon met standard loan conditions.
However, in another blow to the company, Celadon announced that the requested funds had not been received within the 15-business day period.
According to the company, this further delay was down to the ‘institutions responsible for transferring the funds’ requesting further due diligence checks on the company, given the nature of its business.
“The company is engaged with the provider of the facility and understands that the lender is working with the relevant institutions to satisfy their requirements and expects this process to take no longer than two weeks.”
As such, the board has reportedly requested a further £2m from its existing committed credit facility, to ensure it can ‘maximise its working capital position’.
“Shareholders will be aware that historically there have been material delays in receiving funds under the existing facility, there can therefore be no certainty at this stage on the timing in which the Company will receive funds,” it cautioned.
While the company says the new funds will provide it with sufficient working capital to see it through Q3 2025, without receipt of the funding Celadon only has enough sufficient cash at hand to extend to April 2025.
DanCann Pharma
Danish cannabinoid producer DanCann Pharma has signed a new partnership with local bio-tech company, Tetra Pharm Technologies.
Under the new three-year agreement, DanCann will gain exclusive rights to sell and distribute products based on Tetra Pharms’ proprietary drug delivery technology, Zyndikate, in Denmark.
According to the company, which says the deal ‘represents a significant enhancement of their offerings’, the agreement could be extended for both companies and both aim to expand this collaboration to other Nordic countries.
The Zyndikate system is specifically designed for lipophilic molecules like cannabinoids, ensuring optimal absorption and release into the blood stream.
“Partnering with Tetra Pharm Technologies to incorporate their Zyndikate drug delivery technology into our portfolio aligns perfectly with our mission to provide innovative and effective cannabinoid therapies,” said Jeppe Krog Rasmussen, CEO of DanCann Pharma.
“This collaboration not only broadens our product range but also enhances the quality and consistency of treatments available to patients. We are excited about the potential of this partnership to set new standards in cannabinoid-based medicine.”
The pair aim to launch the first cannabinoid medicines based on this technology in the first half of next year.
Argent BioPharma
Argent BioPharma has announced positive results from its Phase IIb clinical trial for CimetrA, as a potential treatment for COVID-19 and inflammatory conditions.
The trial, which was double-blind, randomised, and placebo-controlled, confirmed that CimetrA is safe, with no drug-related side effects reported. Patients receiving the treatment recovered faster and showed greater symptom improvement compared to those on a placebo.
The study also highlighted CimetrA’s ability to reduce inflammation by targeting IL-6, a key inflammatory marker. According to CEO Roby Zomer, the results support CimetrA’s potential beyond COVID-19, suggesting it could be used for autoimmune and inflammatory diseases.
Dr. Nadya Lisovoder, CEO of Galilee Clinical Bio Research, emphasised that CimetrA’s mechanism of action, which modulates cytokines IL-6 and IL-32, offers a unique way to control immune overactivation. Collaboration with Rambam Health Care Campus and Galilee Clinical Bio Research ensured high clinical standards throughout the study.
The trial tested CimetrA formulations with Curcuma longa and Boswellia serrata extracts over 48 hours. Patients showed improvements on the WHO Ordinal Scale for COVID-19 and experienced reduced inflammation levels.
