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Cannabis

Celadon's cannabis plans take root through AIM reversal

Summerway Capital seals Celadon's acquisition with name change

Celadon Pharmaceuticals started trading on AIM in the first listing of a medicinal cannabinoid company since GW Pharma floated on AIM in June 2001.

GW Pharma has since departed to Nasdaq, but Celadon is looking to the UK market to expand its business.

It is one of the first pharmaceutical companies to receive a Home Office licence to grow high tetrahydrocannabinol (THC) medicinal cannabis.

The company will use a 100,000-sq ft lab in the Midlands and initially target the chronic pain market but is looking into the use of cannabinoids in other fields, including autism.

Celadon listed after a reverse takeover of Summerway Capital PLC (AIM:SWC) (Summerway Capital PLC (AIM:SWC)) by medical-cannabis company Vertigrow Technology in an all-share deal worth £80mln at a price of 165p.

According to the NHS, 1 in 5 adults in the UK suffers from chronic pain, of which around 3mln may be eligible to use cannabinoid medicines as an alternative method of treatment.

In order to gain approval from the UK medical regulator, Celadon has grown a few cannabis test batches and is also providing medicinal cannabis to a clinical trial run by LVL Health to treat pain.

Shares in Summerway, which officially changes its name to Celadon tomorrow, were 6.7% lower at 147.5p.

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