Celadon Pharmaceuticals board resigns amid delisting turmoil

The board of the AIM-listed medical cannabis company, Celadon Pharmaceuticals, has resigned en masse after a significant internal dispute with the company’s CEO over an imminent de-listing proposal. The decision has thrown the future leadership and structure of the firm into disarray.

Four non-executive directors, including Robert Barr, Elizabeth Shanahan, David Firth, and Dr Steven Hajioff, stepped down after an extended disagreement with James Short, Celadon’s co-founder and chief executive. Short had recently announced his intent to push through resolutions at the next general shareholders’ meeting, aiming to remove these directors and the chairman from their posts.

According to Celadon, Short argued that moving away from the London junior stock market would significantly reduce operational costs and make it easier to secure funding on better terms. Despite resistance from the board, Short’s determination appears to have forced the departures. Only Short himself and Alexander Anton, the company’s chairman, remain as members of the board. Notably, Anton has already stated his intention to step down should shareholders approve the de-listing plan.

Celadon, which contributes to the growing medical cannabis sector, is renowned for producing cannabis-based treatments for chronic pain and exploring applications for complex conditions such as autism. The company’s troubles have been reflected in its stock performance, suffering a dip of 90 per cent value over the past year. Shares fell a further 24.3 per cent on the news, closing at 10.6p.

Concerns about the company’s financial future have also surfaced. Delays in accessing credit facilities required for working capital were attributed to heightened scrutiny by lenders, possibly tied to the sensitive nature of the industry. Celadon holds a UK Home Office licence, permitting the cultivation and selling of high-THC cannabis strictly for medical purposes. It distributes products to specialist clinics, universities, and pharmaceutical companies.

If the de-listing proceeds, Celadon plans to establish a “matched bargain” facility for private investors to trade shares. Shareholders will ultimately determine the next chapter of this once-promising company.