REG - Hellenic Dynamics - Letter of intent for funding with Piraeus Bank S.A

Hellenic DynamicsAnnouncement

17/01/2024 11:00

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RNS Number : 0215A  Hellenic Dynamics PLC  17 January 2024

17 January 2024

 

Hellenic Dynamics plc

("Hellenic Dynamics" or the "Company")

 

 

Letter of intent for funding with Piraeus Bank S.A.

 

 

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 fast growing global medical cannabis markets,
is pleased to announce that Piraeus Bank S.A ("Piraeus Bank") has conducted a
review of Hellenic Dynamics five year business plan and have issued a letter
of intent for funding ("Letter") which outlines the support from the bank for
the provision of credit facilities on the submission of a detailed business
plan, to be submitted on behalf of Hellenic Dynamics by a consultancy firm
considered to be acceptable by Piraeus Bank.

 

Piraeus Bank, headquartered in Athens, is one of Greece's largest banks and
one of the most prominent in the agricultural sector. Under the terms of the
Letter, Piraeus Bank intends to consider providing Hellenic Dynamics with
credit facilities, as follows:

 

1.    export factoring for working capital;

2.    letters of guarantee in respect of advance payment of certain Greek
domestic grants which the Company has applied for; and

3.   loans in respect of the expansion of cultivation buildings at the
Company's 195,506 square meter  facility in Northern Greece.

 

Any support provided by Piraeus Bank would contribute to the advancement of
the Company's future developments and objectives, which underpins the
Company's business plan and strategy.

 

Hellenic is now focusing on working with Piraeus Bank to move forward with
this funding opportunity in order to develop and grow its business for the
long term benefit of shareholders, and is intending to submit the required
documentation to Piraeus Bank's appointed consultancy firm in due course.

 

Dr Fillipos Papadopoulos, Executive Director of Hellenic Dynamics, commented:
"Piraeus Bank has been a  steady supporter of Hellenic and a long term
believer in the prospects of the Company and the medical cannabis sector in
Greece. The expertise of its team in the agricultural sector allows the bank
to have a deep understanding of medical cannabis cultivation and processing
and thus facilitates an excellent working relationship. I am very pleased that
we are now moving ahead with the various discussions pertaining to funding,
the early payment of national grants the Company has applied for and of course
the future expansion of our facility under our POD programmes."

 

 

The Directors of the Company take responsibility for this announcement.

 

Enquires:

 

 Hellenic Dynamics plc               +44 (0)20 3818 7850
 Davinder Rai                        davinder@hellenicdynamics.com

 Cairn Financial Advisers LLP        +44 (0)20 7213 0880
 Emily Staples / Jo Turner

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

 

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 global medical cannabis markets.
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.
 
26 European countries now allow medical cannabis via prescription and the
European cannabis market is expected to reach €17.39 billion per annum by
2028. Sales of Hellenic Dynamics' dried THC-dominant cannabis flowers and
extracts are initially intended for export into Europe, in addition to other
international markets and 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 24 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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