Celadon Pharmaceuticals Plc announced 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 £26 million of product (£8.7 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 thetwo previous UK contracts announced in May and September 2023 respectively. The level of interest in Celadon's product from European medicinal cannabis companies highlights, the Directors believe, the material benefits of indoor, fully controlled hydroponic cannabis cultivation, and its significant quality advantages over other forms of cultivation, such as glasshouse or outdoor facilities. Celadon continues to receive further expressions of interest in the supply of its pharmaceutical-grade product, and the Company is currently in discussions to convert these into commercial contracts.