REG - Hellenic Dynamics - Business Update

Hellenic DynamicsAnnouncement

23/01/2023 07:00

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RNS Number : 4760N  Hellenic Dynamics PLC  23 January 2023

Hellenic Dynamics plc

("Hellenic Dynamics" or the "Company")

Business Update

 

London, 20 January 2023: Hellenic Dynamics plc (LSE: HELD) is a medical
cannabis cultivator specifically focused on the cultivation and supply of
tetrahydrocannabinol ("THC") dominant strains of medical cannabis
flowers destined for the rapidly growing medical cannabis markets across
Europe. In December 2022, Hellenic Dynamics became the first medical cannabis
cultivator to list on the London Stock Exchange's main market for listed
securities.

 

Highlights

 

·    Phase one cultivation fit out strategy well underway

·    On track for first harvest in mid-2023

·    In advanced discussions with licensed medical cannabis distributors
outside Germany for additional off-take agreements

·    Wholesale prices of medical cannabis flowers in Europe holding
strong

 

Hellenic Dynamics' core strategy is to develop and operate its 40,000 square
metre active THC cultivation licence from its 195,506 square metre facility
located near Thessaloniki in Northern Greece.

 

The facility benefits from one of the lowest costs of power in Europe as well
as having its own running water supply, meaning that utility costs are
significantly below standard market rates.  Furthermore, the facility is
located in an area that has one of the lowest rates for skilled and
semi-skilled labour in Europe. The licence allows for an active cultivation
area for THC-dominant medical cannabis of 40,000 square meters, which is one
of the largest THC cultivation licences issued in Europe, capable of producing
over 54,000 kg of dried medical cannabis flowers per annum when in full
production.

 

Hellenic Dynamics has signed two term sheets for off-take of its THC-dominant
medical cannabis flowers into Germany's advanced medical cannabis market,
where there are over 350,000 patients who receive medical cannabis via
prescription, with European patient numbers growing annually and estimated to
exceed 500,000 in 2023. With 25 countries in Europe now allowing medical
cannabis prescriptions to patients, Hellenic Dynamics' strategy is to secure
and fulfil further supply agreements within Europe. The European cannabis
market is expected to reach €43.3 billion per annum by 2027.

 

Davinder Rai, CEO of Hellenic Dynamics, commented:

"We have continued to make good progress since our IPO and our cultivation and
processing facility in Greece is on track to be ready for the first harvest to
take place in the second quarter of this year. With discussions with new
potential off-take customers on going, and the price of THC-dominant medical
cannabis holding firm, we look to the future with confidence and can't wait
for our products to start changing patients' lives for the better during
2023."

Phase one cultivation strategy well underway

The company's facility comprises of 14 constructed buildings which house
offices, security, a post-harvest processing area, a 200 tonne water tank,
five over ground bunkers which are for cultivation and propagation and three
storage buildings. Phase one of the fit-out and process implementation
strategy for the facility is well underway. All cultivation and propagation
activities will be in line with Good Agricultural and Collection Practices for
Medicinal Plants ("GACP") requirements and the post-harvest completion area
will be in line with EU-Good Manufacturing Practice ("EU-GMP") requirements.

On track for Q2 2023 revenues to meet distributor demand

The Company expects to complete the initial fit-out and activation phase of
its facility during Q1 2023 which will enable it to cultivate, harvest and
supply its pre-allocated medical cannabis flowers to its off-take customers in
Germany during mid-2023. Hellenic Dynamics expects the total cultivation area
to be expanded towards its licence capacity as it secures phased revenues in
line with growing European demand. As such, Hellenic Dynamics is in advanced
discussions with licensed medical distributors outside of Germany and a
further update will be made to the market in due course.

Wholesale prices of medical cannabis flowers holding strong

The current wholesale price of THC medical cannabis flowers of a THC content
of 22% and above is holding strong and Hellenic Dynamics expect these prices
to continue throughout the year. Demand for medical cannabis products in
Germany and other target markets in Europe are increasing annually and
Hellenic Dynamic is in a prime position to serve these.

 

THC-dominant medical cannabis products are only available via a medical
prescription. Medicinal cannabis has been approved for use both in the United
Kingdom and Germany, plus 23 other European countries, for conditions
including chronic pain, intractable chemotherapy-related nausea, anxiety,
insomnia, Tourette's syndrome, substance use disorder, multiple sclerosis,
IBS, spinal cord treatment, lack of appetite due to HIV/AIDS, cachexia,
anorexia and glaucoma.

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

Enquires:

 

Hellenic Dynamics plc                                +44 (0)20
3818 7850

Davinder Rai
   davinder@hellenicdynamics.com

 

Cairn Financial Advisers LLP

Emily Staples / Jo Turner                           +44 (0)20
7213 0880

 

Peterhouse Capital

Lucy Williams / Charles Goodfellow           +44 (0)20 7469 0930

 

J&H Communications

George Hudson
 +44 (0)7803 603130

About Hellenic Dynamics plc

Founded in 2019, Hellenic Dynamics is specifically focused on the cultivation
and supply of THC ("tetrahydrocannabinol") - dominant strains of medical
cannabis flowers, destined for the growing medical cannabis markets across
Europe. Hellenic Dynamics' core strategy is to develop and operate its 40,000
square metre active cultivation licence from its 195,506 square metre facility
located near Thessaloniki in Northern Greece. In full production, Hellenic
Dynamics is capable of producing over 54,000 kg of dried flowers per annum.

Hellenic Dynamics will take advantage of its relatively low cost base
resulting from a comparatively low cost of power, having its own running water
supply and the labour rates for skilled and semi-skilled labour in Northern
Greece.

25 European countries now allow medical cannabis via prescription and the
European cannabis market is expected to reach €43.3 billion per annum by
2027. Sales of Hellenic Dynamics' dried THC-dominant cannabis flowers and
extracts are initially intended for export into Europe's largest market -
Germany, in addition to other European markets including domestically in
Greece.

As the first medical cannabis cultivator to obtain a listing on the main
market for listed securities of the London Stock Exchange, Hellenic is
significantly different to the number of CBD (Cannabidiol) related companies
that have appeared over the recent years. Hellenic Dynamics cultivates
THC-dominant medical cannabis flowers. THC-dominant medical cannabis products
are only available via a medical prescription. Medicinal cannabis has been
approved for use both in the United Kingdom and Germany, plus 23 other
European countries, for conditions including but not limited to  chronic
pain, intractable chemotherapy-related nausea, anxiety, insomnia, Tourette's
syndrome, substance use disorder, multiple sclerosis, IBS, spinal cord
treatment, lack of appetite due to HIV/AIDS, cachexia, anorexia and glaucoma.

For further information please visit our website www.hellenicdynamics.com
(http://www.hellenicdynamics.com)

 

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

 

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