UK Cannabis Firm Raises £1.05M Via Discounted Offering, Expands Partnership With Danish Medical Marijuana Producer
The London-listed cannabis-focused pharma company Celadon Pharmaceuticals Plc (AIM: CEL) raised £1.05 million ($1.37 million) by selling 2.63 million new ordinary shares at 40 pence per share. This price is about 23.8% lower than the previous day’s share price of 52.5 pence. The discounted fundraiser may have caused a 20% drop in Celadon’s shares on Tuesday, writes Proactive Investors.
These shares will start trading on AIM (a UK stock exchange) around 17 Sep. 2024, with cash settlement on 18 Sep. 2024. The fundraising was handled by Global Investment Strategy UK Limited, which will receive a cash fee along with warrants for 131,250 new shares.
“Celadon is grateful to the investors who have participated in the Fundraising, and to the Subscriber and lender for their re-confirmed commitments to the company,” stated James Short, chief executive officer of Celadon. “The Group’s ongoing conversations with alternative potential lenders continue with a view to securing the long-term future for the business.Following this morning’s announcement of the Group’s strategic collaboration with Valeos Pharma A/S, the Fundraise and ongoing funding discussions give the Group confidence in the long term value of the Group.”
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