Shares in Celadon Pharmaceuticals PLC (AIM:CEL) jumped 120% on Monday after the company said it may be close to securing a funding lifeline, just weeks after warning it could run out of cash.
The AIM-listed medical cannabis developer revealed after hours on Friday that a new finance provider had completed due diligence and was in the process of making funds available.
Celadon has been searching for emergency capital since confirming at the end of April that it only had enough money to operate through May.
While the update has triggered a surge in the share price, the situation remains precarious.
Celadon said it still has “limited working capital” and will be forced into administration if the new funding does not materialise in the coming days.
Even if the money arrives, the company said it still plans to delist from AIM. A further announcement will be made once there is more certainty.
In late afternoon trading, the stock was up 6p at 11p.