Celadon Pharmaceuticals Share Discussion Threads

[talk2dubya] 07/3/2024 13:27

Looks like a pretty significant RNS to me this. Market seems to have missed it, have bought a few today.

Is this not significant, the part about the GP’s?
gives us even greater confidence in our forthcoming clinical trial, which will involve up to 5,000 patients and see General Practitioners permitted to prescribe cannabis-based medicines

[czar] 12/12/2023 14:19

This looks to be yet another UK Company that is achieving excellent progress but is massively undervalues on AIM. It has to either rerate, be taken over or move to another exchange. The last UK business with similar credentials was GW Pharma and that got bought for $7.2 billion.

[ahhh luke warm] 16/11/2023 18:27

You may be right in time Czar. The contracts announced today are a leap forward. My eyebrows were raised when learning that Mr Short has become involved with GIS and John Gunn. Maybe you should research them and take a look at INSP, a Gunn company issuing confetti shares for 10 yrs with no product to show and not a single penny of revenue on the books. Unbelievable you would think.

[ahhh luke warm] 16/11/2023 16:43

I know you have a good understanding of this industry with it being in your core skill set but how does that actually work; how do they facilitate/ arrange the transactions?Dummies guide sort of thing.It's obvious manipulation takes place but how they facilitate such moves is not often straight forward to fathom, until you are educated of course. Cheers ALW

[czar] 16/11/2023 16:18

Take a look back at GW Pharma they were a penny stock on AIM that followed the same path as Celadon and sold for $7.2b $220 a share. CEL will emulate GW, maybe not $220 a share but many many times the current price IMHO.

[jaknife] 16/11/2023 10:04

Ahhh Luke Warm,

It's not a particularly great name to be associated with. I'm expecting a standard equity fund raise at some point, whereupon the convertible will be converted. I assume that GIS are already selling short.

czar,

"There are a lot of small caps with absurd valuations and Celadon should be many times the current price IMHO."

The problem is that CEL's valuation is absurdly high rather than absurdly low.

At 102.5p it's a £64m market cap but the interims:



show a company with just £3m of net equity of which £1.6m of that is cash and it burnt £3.5m of cash in the last six months!

It's an obvious dog!

JakNife

[czar] 16/11/2023 07:47

Note the bid for Hotel Chocolat, yesterday its worth £189m, today £534m. There are a lot of small caps with absurd valuations and Celadon should be many times the current price IMHO.

[ahhh luke warm] 16/11/2023 07:38

Let's see if that adds more to the 135mlnMC. Jak, probably spot on with the shorting MM investor. What's your thoughts around John Gunn and GIS?

[ahhh luke warm] 16/11/2023 07:33

London, 16 November 2023 - Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, announces that it has entered into a contract for the commercial supply of its pharmaceutical-grade cannabis product with a leading European medicinal cannabis company.The contract has the potential to generate revenue to Celadon of up to GBP26 million of product (GBP8.7 million annually) over the three year term, with the first delivery anticipated in H2 2024. The two parties retain the option to extend the contract for a further two years by mutual agreement.This latest sales contract follows the two previous UK contracts announced in May and September 2023 respectively.

[ahhh luke warm] 16/11/2023 07:31

Financing unsecured CLNs at 10% interest. The last line is a red flag to this sort of set up. Mr Short came over all holy and clean and crisp but now associated with John Gunn financing. Tut, tut!At this stage it is anticipated that the Convertible Loan Notes will be issued at par with a 5 year term and will be unsecured. The notes are expected to carry a coupon of 10 per cent. per annum and to be convertible at the option of the investor after 2 years, or to be mandatorily converted into ordinary shares of 1 pence each ("Ordinary Shares") on a qualifying financing to be determined or change of control of the Company.

[ahhh luke warm] 16/11/2023 07:24

Jak, never a good sign unless it's for him where a John Gunn company appear in association; ie: GISFrom the raise RNS:The Company is also pleased to announce the appointment of Global Investment Strategy UK Limited as Joint Broker to the Company. Canaccord Genuity Limited will remain as NOMAD and a Broker to the Company.Future Convertible Loan NotesIn addition to the Fundraise above and following investor interest, the Company is seeking to raise further funding moving forward through the issuance of Convertible Loan Notes ("CLN Financing"). The Company has already received expressions of interest from potential investors to subscribe for the CLN Financing.

[jaknife] 13/10/2023 10:07

Who are these supposed "serious investors"? I assumed that it was the market maker that took up the placing after having gone short into the market for the previous six months!

There are no "serious investors" investing into Celadone. It's a loss-making, cash-burning spin machine and has net assets of just £3m. Yet the market cap is £77m!

People are paying £77m to buy £3m of assets, that's like paying £25 to buy a used £1 coin!

[czar] 13/10/2023 08:25

Serious investors just paid 125p when the morons were selling it at 115p, who is smarter, who knows more? I'm following the intelligent investors money and adding at 125p.

[truant2tb1] 28/9/2023 08:57

£8k revenues, how is this thing not down 50%?!

[jaknife] 05/9/2023 19:07

No comment on todays RNS?



Am I the only person interested in CEL?

JakNife

[jaknife] 05/6/2023 12:22

Any comments on today's finals?



* Pitifully small revenue of just £24k & cost of sales of £90k
* Hence every £1,000 of product sold cost the company £3,750 to make!
* material operating costs giving an overall operating loss of £5.4m!
* Other astronomical costs making a total loss before tax of £18.1m!
* Cash as at 31 Dec 2022 of £5.1m
* But cash as at 31 May 2023 of just £1.8m so cash burn in the first five months of the year is £3.3m, equal to £0.66m a month
* net assets at year-end of just £7.0m, which must be c. £3.7m at 31 May

* All of this for a bargain market cap of £100m - more than 25 times net assets
* Alternatively put, the share price needs to fall 96% to get close to net assets

Is Celadon the easiest and most obvious short on AIM?

JakNife

[solarno lopez] 30/5/2023 13:53

And that's the reason to consider Hellenic

[czar] 30/5/2023 12:28

The only reason not to have invested in CEL this year was the likelihood that they would raise money and you would probably get stock slightly cheaper and in good size. That reason no longer applies so I expect to see this stock to move much higher over the coming weeks and months. imho

[solarno lopez] 30/5/2023 08:58

Almost as good as Hellenic ( held )