Celadon Pharmaceuticals (CEL) has yet to respond to the shocking suggestion that its CEO, via a third party, funded the last £150,000 paid for by an investor who would otherwise have welched on his deal. Meanwhile progress, of sort, from the bloke who welched on a £1 million loan.
On Friday, with the shares at 16p, Celadon Pharmaceuticals (CEL) announced that a punter wo had welshed on a May commitment to subscribe for shares at 105p had finally coughed up his final £150,000. But did he?
Over at Celadon Pharmaceuticals (CEL) auditor Graham Bond of RSM signed off on 13 May 2024 after the Post Balance Sheet Fundraise on 10 May 2024 noted in the accounts. Given the fund raise was specifically highlighted as a relevant factor in the going concern assessment, the auditor RSM should have audited the note carefully given he must have relied on Fundraise to issue a clean going concern opinion.
As a long term bear the near death throes of Celadon Pharmaceuticals (CEL) provide some morbid satisfaction but there is a way of, at least postponing, the grim end and that is a placing. It will be massively discounted but Celadon needs to come clean, fess up and do it before it’s too late.
If AIM was not such a joke then James Short, the CEO of Celadon Pharmaceuticals (CEL) would have been fired months ago for his tardy disclosure that sums owed from a May loan and equity investment agreement did not arrive on schedule. And they have still not arrived leaving the company in crisis, as it ‘fessed up to today.
First it was PR FemiNazi Sara McLeod who batted for Celadon Pharmaceuticals (CEL) against the Sheriff. She was sent packing back to the pavilion this summer. Now it is CFO Jonathan Turner who has had enough and given three months notice. He will be off on December 27. Which rat will leaved the sinking ship next because today’s interims are diabolical and come with an explicit warning.
Having pumped its shares up to 52.5p last night despite being virtually insolvent, Celadon Pharmaceuticals (CEL) has used broker Global Investment Strategy UK Limited, run by SEC censured John Gunn, to do a placing at just 40p. GIS raised £1.05 million gross for which it will earn fifty grand and 131,250 warrants with a 40p strike. Expect them to be forward sold into any spike. But, and it is a bigger but than that of Carole Vordeman…
There is some good news from Celadon (CEL) in terms of the missing funds, and that is why the shares are up by 25% and 27.25p. But if you read between the lines there is also bad news, the unpaid bills are stacking up. Sooner or later a creditor is going to issue a stat demand. You are insane if you hold this equity.
What has emerged today at Celadon Pharmaceuticals (CEL) is truly shocking even by the tawdry standards of the AIM sewer. The breaches of AIM Rules are explicit and clear. There is almost certainly a Companies Act breach as well and the Nomad has been grossly negligent. If heads do not roll you just have to ask what is the point of Marcus Stuttard and his team of Oxymorons at AIM regulation. I have dropped Marcus and his troops a letter, just to put them on notice.
I have already demonstrated how, near as damn it bankrupt, Celadon Pharmaceuticals (CEL) breached AIM Rules in a grotesque way relating to its perilous financial position HERE. But it gets worse. A clued up bird has been on the dog and bone and I suggest that there are 4thgere are 4 additional matters that AIM Regulation must consider as a matter of urgency
The femiNazi PR to Celadon Pharmaceuticals (CEL) Sarah McLeod described my initial expose as “ your daily hit job” without actually reading the piece as she was busy lunching with other FemiNazis. I do hope that folks heeded that hit job and many others that followed because today the company has ‘fessed to a financial crisis and inadvertently admitted to a mammoth breach of AIM Rules 10 and 11. Its shares are surely uninvestable and really should be suspended for all sorts of reasons.
Feminazi PR genius Sarah McLeod is a crafty old coot. Her client Celadon (CEL) announced a new US order a few months ago but neglected to mention its value. How careless. Meanwhile other contracts are said to have a “maximum value of x”. Again no hard numbers on what is actually expected. I have flagged up before how this company has overegged the pudding on revenue forecasts.
As it is Friday, I fear that FemiNazi PR Sarah Mcleod may be on a long lunch with the sisterhood but I suggest that with shares in her client Celadon Pharmaceuticals (CEL) diving again today to a new low of just 59p she should be crafting a statement. My money is on Celadon already knowing that forecasts will be missed and it needs to ‘fess up to that.
