SWC.L Regulatory News (SWC)

28 March 2022

Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc)

("Celadon", the "Company" or the "Group") 

Admission to AIM and First Day of Dealings

Following completion of the acquisition of Vertigrow Technology Ltd, Summerway Capital Plc (AIM: SWC) (renamed as Celadon Pharmaceuticals Plc), now a UK-based pharmaceutical company targeting the research, cultivation, manufacturing and supply of cannabinoid-based medicines, announces the admission of its enlarged issued ordinary share capital to trading on AIM, a market operated by the London Stock Exchange plc at 8.00am today ("Admission"). The change of name on the London Stock Exchange from Summerway Capital Plc to Celadon Pharmaceuticals Plc and a new ticker code is expected to take effect on 29 March 2022.

Highlights

· Celadon's goal is to become the provider and partner of choice for pharmaceutical cannabinoid-based medicines in the highly regulated UK market and is initially focusing on the chronic pain market.

· Celadon is believed to be one of the first pharmaceutical companies in the UK to receive a Home Office licence, following approval from the Medicines and Healthcare products Regulatory Agency ("MHRA") to apply for the licence, allowing it to grow high tetrahydrocannabinol ("THC") medicinal cannabis.

· The Group has a 100,000 square foot facility located in the Midlands, UK, that comprises a laboratory designed to meet UK-GMP standards, with capacity for a large indoor hydroponic growing facility in accordance with GACP guidelines.

· The Group's organic strategy is to facilitate access to cannabinoid-based medicines by undertaking trials, documenting and sharing the resulting data and educating physicians. Following receipt of the relevant UK-GMP authorisation from the MHRA, and a new licence from the Home Office, Celadon intends to cultivate and manufacture active pharmaceutical ingredient ("API") from its own facilities for sale to the UK manufacturing market. The Group will also form partnerships with other parties seeking to manufacture cannabinoid-based medicines.

· The Group has an emerging portfolio of partner companies across therapeutic indications, with a majority shareholding in LVL Health chronic pain clinic and a minority stake in Kingdom Therapeutics, an early-stage biopharmaceutical company developing a cannabinoid-based licensed medicine for autism spectrum disorder.

· At full capacity, the Group's current facility could supply up to circa 50,000 patients, which has the potential to generate revenue of £90 million per annum with EBITDA margins of approximately 50 per cent.

· Celadon operates within a highly regulated market with substantial growth potential, benefiting from positive tailwinds and strong regulatory and operational barriers to entry, which include its integrated supply chain. The UK Government estimates that there are 3 million chronic pain sufferers in UK that could be eligible for a prescription of cannabinoids on the National Health Service ("NHS")[1].

· The Group's subsidiary, LVL, owns a MHRA conditionally approved trial using a cannabis based medicinal product to treat chronic pain. The Directors believe, if it shows safety and efficacy, the trial has the potential to provide a robust data set and an opportunity to present such data to the National Institute for Health and Care Excellence ("NICE") that may enable it to recommend the type of medicinal product studied in the Trial for prescription on the NHS, for the uses studied in the Trial.

As set out in the Admission Document, James Short, Alexander Anton, Kathleen Long, Robert Barr and Dr Steven Hajioff have today been appointed to the board of directors of the Company, and Benjamin Shaw has stepped down. The change of name on the London Stock Exchange from Summerway Capital Plc to Celadon Pharmaceuticals Plc and a new ticker code is expected to take effect on 29 March 2022.

Admission follows a placing by Canaccord Genuity and a subscription to certain investors for a total of 5,151,516 ordinary shares at 165 pence per ordinary share, raising gross proceeds of £8.5 million, before expenses. Based on the closing share price on 25 March 2022, being 158 pence, the Group will have a market capitalisation on Admission of £97.4 million.

Following Admission, the number of Ordinary Shares in issue and admitted to trading on AIM will be 61,669,773.

This figure of 61,669,773 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Canaccord Genuity acted as Nominated Adviser, Broker and Bookrunner in relation to the Fundraising and Admission.

James Short, Chief Executive Officer, commented: "Today marks a huge milestone for Celadon, following our successful equity fundraise. Celadon is focused on putting the patient first. I frequently talk to patients who have used cannabinoid-based products for chronic pain, and other illnesses; I know how life-changing this can be for patients who are most in need in society. Celadon is excited to be at the forefront of the sector and has huge ambitions to take the business forward. I would like to personally welcome our new investors and thank them, and the original investors, for their trust in me and our incredible team. I look forward to updating the market with further developments in due course."

For the purposes of UK MAR, the person responsible for arranging for the release of this announcement on behalf of the Company is James Short, Chief Executive Officer of the Company.

The Company's Admission Document, as well as other information required pursuant to AIM Rule 26, is available on the Company's website at www.celadonpharma.com. Defined terms have the same meaning as set out in the Company's Admission Document.

The Company's ISIN is GB00BDQYGP38, SEDOL is BDQYGP3 and AIM TIDM is SWC.

About Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc)

Following completion of the acquisition of Vertigrow Technology Ltd ("Celadon"), Summerway Capital Plc (renamed as Celadon Pharmaceuticals Plc) is a UK based pharmaceutical company targeting the research, cultivation, manufacturing and supply of cannabinoid-based medicines. Its primary focus is on improving quality of life for chronic pain sufferers, as well as exploring the potential of cannabinoid-based medicines for other conditions such as autism. Its UK facility comprises a laboratory designed to meet UK-GMP standards, and capacity for a large indoor hydroponic growing facility that has received a Home Office Licence to legally grow high THC medicinal cannabis for the purpose of producing test batches of cannabis oil to support its application to the MHRA. The Company's subsidiary, LVL, owns a MHRA conditionally approved cannabis trial using cannabis based medicinal products to treat chronic pain in the UK. 

For further information please visit our website www.celadonpharma.com