REG - Hellenic Dynamics - Business Update

Hellenic DynamicsAnnouncement

29/09/2023 12:15

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RNS Number : 1983O  Hellenic Dynamics PLC  29 September 2023

Hellenic Dynamics plc

("Hellenic Dynamics" or the "Company")

 

Business Update

 

London, 29 September 2023, Hellenic Dynamics Plc (LSE: HELD), a medical
cannabis cultivator with a dedicated focus on producing tetrahydrocannabinol
("THC") dominant strains of medical cannabis flowers for the burgeoning
European medical cannabis markets, provides the following significant business
update.

 

Business Highlights and Updates

 

·      Effective completion of Phase One development of its cultivation
facility

·      Cultivation, in Partnership with Elgo Dimitra, ready to commence

·      Further exclusive strategic cultivation agreement with Nine Lions
Bioscience Corp., a renowned Canadian-based supplier of cannabis genetics, for
exclusive European cultivation

 

Hellenic Dynamics is pleased to announce that the construction and outfitting
of its cultivation facility in Greece will be completed imminently and first
cultivation is scheduled to occur on or before 10 October 2023. This is a
pivotal milestone towards the Company being able to provide high-quality
medical cannabis to the rapidly expanding markets across Europe.

 

The Phase One infrastructure work, which was undertaken following the
Company's Admission to the standard segment of the London Stock Exchange in
December 2022, concludes the work programme stipulated by the construction and
installation licence application and covers a 127,743 square meter section of
the Company's site, including all buildings the Company wishes to assign for
future cultivation requirements.  Development has included demolition and
construction activities across the whole 200,000 square meter site,
refurbishment and rebuilding of certain buildings, connection of all utilities
and drainage, fibre connectivity and the installation of state-of-the-art
cultivation systems and related cultivation equipment from industry-leading
suppliers.  As a result of the completion of this work, the Company can now
proceed to its operational licence and Phase 2 development which allows it
access to 40,000 square meters of cultivation capacity, capable of producing
over 54,000 kg of product per annum.  The development has been done in line
with the Company's initial projected budget and the Company believes it has
established one of the most sophisticated cultivation facilities at one of the
lowest capex costs in the European cannabis market.

 

The nearing of Phase One completion allowed the Company to advance certain
commercial agreements in conjunction and the Board of Hellenic Dynamics is
also pleased to be able to advise of the following progress in this regard.

 

Elgo Dimitra

1.   In accordance with its memorandum of understanding announced on 22
March 2023 with Elgo Dimitra - the public research institute overseen by the
Greek Ministry of Agriculture, on or before 10 October 2023, Hellenic Dynamics
will start cultivating under Elgo Dimitra's licence.  This allows the Company
to calibrate its newly installed equipment and benefit from Elgo Dimitra's
scientific knowhow and experience in cultivating medicinal cannabis.
Collaborating with a public body marks a significant milestone, underscoring
the Company's commitment to responsible cultivation practices and adherence to
regulatory requirements.

 

Nine Lions Bioscience Corp.

2.   Hellenic Dynamics has entered into an exclusive agreement with Nine
Lions Bioscience Corp., a globally renowned, Canadian-based cannabis genetics
breeder with over 25 years of experience in the industry and several Cannabis
Cup awards. Under this agreement, Hellenic Dynamics will import and cultivate
a selection of distinctive high-THC medical cannabis strains at Hellenic
Dynamics' facility in Greece, for onward commercial cultivation to meet the
specific needs of the Company's European customers on a European exclusive
basis.

 

 

The Company now expects to be in a position to expand its total cultivation
area, which includes the sale of further product outsourcing and developments
("POD") units, with further news to be published in due course.

 

 

Davinder Rai, CEO of Hellenic Dynamics, commented: "The commitment of the
Hellenic Dynamics team to secure the first and currently only main market
listing for a medical cannabis cultivator on the London Stock Exchange has
been reflected in the seamless progress over the past nine months. During this
time, Hellenic Dynamics has successfully completed the demolition,
construction, and outfitting of our facility. By collaborating with industry
leading suppliers of state-of-the-art equipment, I believe we have established
one of the most cost-efficient cultivation facilities in Europe. As a company,
Hellenic Dynamics remains highly conscious of its expenditure, and achieving
what the Company has with the funds secured from the Admission speaks volumes
about the dedication and hard work of the entire team. I eagerly anticipate
our company's future as one of the most cost-effective producers of
consistently high-quality medical cannabis flowers for the European market.
Our partnerships with Elgo Dimitra and Nine Lions further solidify our
presence and capabilities in the rapidly growing European medical cannabis
industry."

 

 

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

 

 

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 Dynamics
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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