Market's view on Celadon Pharma.
Published on April 2024
- Stock watchers highlight a significant RNS announcement from a company that will permit general practitioners to prescribe cannabis-based medicines in an upcoming clinical trial involving 5,000 patients.
- Discussions focus on the company’s potential undervaluation on AIM, with parallels drawn to GW Pharma, which was acquired for $7.2 billion.
- Concerns raised about the company’s involvement with controversial figures and companies known for issuing shares without corresponding business progress.
- Stock watchers express scepticism about the company’s financial health, citing instances of high burn rates and low net assets in contrast to its market cap.
- The company’s latest contract for the commercial supply of cannabis products to a European company, potentially worth GBP 26 million, is discussed.
- Doubts are cast on the company’s financial strategies, including high-interest convertible loan notes and associations with specific investment brokers.
- Stock watchers are critical of the company’s revenue performance and the rationale behind its stock valuation, suggesting that it is overpriced.
- The stock’s potential for a significant price movement is debated, with some watchers expecting higher prices following the elimination of reasons for stock undervaluation.