(Sharecast News) - Medical cannabis specialist Celadon Pharmaceuticals has started supplying its pharmaceutical-grade product to two commercial contracts, first announced on 24 May and 5 September, it said on Thursday.
The AIM-traded firm said the achievement came after completing the latest harvest at its UK-based facility, which would serve as the primary source for fulfilling its commercial obligations.
It said it had commenced periodic invoicing for both contracts, with the first contract guaranteed to generate a minimum revenue of £3m and the second contract expected to yield up to £1.2m in revenue.
Since the announcement of the two contracts, Celadon said it had expanded its portfolio by securing an additional commercial agreement on 16 November with a prominent European medicinal cannabis company.
The new contract could deliver revenue of up to £26m to Celadon over three years, with the initial product delivery expected in the second half of next year.
"The first supply of our pharmaceutical-grade product is a very significant milestone for both Celadon and the wider industry," said chief executive officer James Short.
"It has taken four years of hard work from our incredible team to get here.
"Having achieved our licences and secured our initial commercial contracts, today demonstrates that we are successfully supplying products and realising revenue."
Short said Celadon's focus on the highest standards of product quality was essential to meeting its customers' high expectations and building trust in the UK's medical cannabis market.
"Pleasingly, we are already seeing strong levels of demand for our product and, supported by the high barriers to entry for new producers, we remain confident in our long-term growth prospects."
At 1143 GMT, shares in Celadon Pharmaceuticals were up 0.52% at 115.6p.
Reporting by Josh White for Sharecast.com.
Celadon Pharma. (CEL)