Celadon Pharmaceuticals still facing cash crisis

(Sharecast News) - Celadon Pharmaceuticals reiterated on Wednesday that it has yet to receive funds under its secured credit facility, and was still facing significant funding uncertainty, raising the prospect of administration if additional financing is not secured promptly. The AIM-traded company said there had been no material progress since its 31 March update, and that it remained in discussions with the existing credit facility provider while also actively seeking alternative sources of finance.

However, Celadon cautioned that there was no guarantee of securing new funding or clarity on its timing.

Celadon previously disclosed it had limited working capital and was relying on creditor support to continue trading.

That support remained in place, and the company said it now believed it could continue operations into May.

However, it warned that without timely funding, the board may have to place the company into administration at short notice to protect stakeholder interests.

The company said it would provide further updates as appropriate.

At 1127 BST, shares in Celadon Pharmaceuticals were down 12.31% at 5.7p.

Reporting by Josh White for Sharecast.com.