18th Nov 2024 12:59
(Alliance News) - Celadon Pharmaceuticals PLC on Monday said it has sufficient working capital to last through to January, but cautioned that talks over alternative lending facilities have not materially progressed since late September.
Shares in Celadon were down 29% at 20.00 pence each in London on Monday afternoon.
The London-based pharmaceutical company, which is focused on cannabis-based medicines, said it is owed GBP400,000 from a historic subscription and stands to receive GBP500,000 under an agreement with a lender.
The subscriber "continues to communicate an intention to pay all monies owed" but the company said "there cannot be certainty on the timing of receipt of funds". The company also said it cannot be sure when it will receive further funding from the lender, which depends on the lender realising funds from the sale of an investment.
The company's cash position was GBP300,000 as of November 15. It has "sufficient working capital through to January", it explained.
Celadon in September said it was in talks with its existing lender about "receiving further amounts on the committed credit facility". It added at the time that it was in talks with "a small number of other potential lenders about entering into longer term debt facilities".
Celadon explained on Monday that these talks are now with a "single finance provider only".
"The directors do not consider these discussions to have progressed materially since the interim results. The company however continues to seek to engage to provide longer term capital to the business," it warned on Monday, however.
By Michael Hennessey, Alliance News reporter
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