(Alliance News) - Celadon Pharmaceuticals PLC on Tuesday said that it has secured a credit facility in order to meet increased demand for its pharmaceutical cannabis product.
Celadon is a pharmaceutical company focused on the research, cultivation, manufacturing and sale of breakthrough cannabis-based medicines. Its main focus is on improving quality of life for chronic pain sufferers.
The firm entered a GBP7 million, two-year committed credit facility with a UK-based "high net worth investor", who went unnamed.
Under the terms of the agreement, Celadon can use the facility for general corporate purposes, in order to increase its working capital headroom in the light of growing interest for its cannabis product.
The facility is unsecured; any drawn balances will attract a fixed interest rate of 10% per annum.
"We are delighted to have secured the GBP7 million credit facility at such an important time in the company's growth journey. It will support the growth in our operations to meet the increasing demand for Celadon's product," said Chief Executive Officer James Short.
Celadon shares were trading 8.8% higher at 174.00 pence each in London on Tuesday morning.
By Holly Beveridge, Alliance News reporter
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Celadon Pharma. (CEL)