REG - Hellenic Dynamics - Long Term Loan Agreement

Hellenic DynamicsAnnouncement

22/04/2024 07:00

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RNS Number : 3914L  Hellenic Dynamics PLC  22 April 2024

22 April 2024

 

Hellenic Dynamics plc

("Hellenic Dynamics" or the "Company")

 

 

Long Term Loan Agreement

 

 

London, 22 April 2024, 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, announces that Hellenic Dynamics SA, ("Hellenic
SA"), the sole subsidiary of the Company, has entered into a 15 year secured
loan agreement with a European investment and consulting house focused in
health along with oil and gas, commodities construction, and financing, for
EUR 1 million ("Loan Agreement"). The Company will use the funds available
from the Loan Agreement for working capital purposes and to complete the
current phase of investment at the Hellenic facility, including financing the
first stage of additional cultivation capacity, which will allow the Company
to bring in-house further commercial cultivation and research and development
testing of strains to the 195,596 square meter Hellenic facility in northern
Greece.

 

The Loan Agreement provides financing of EUR 1 million to the Company with an
annual interest rate of 3.5% with a repayment period of 180 months. For the
first 6 months, repayments will be on an 'interest only' basis following which
principal and interest will be repaid. The Loan Agreement is guaranteed
through an insurance policy with one of the world's largest insurance
companies. The Company will pay an insurance fee of EUR 25,000, or 2.5% of the
total loan amount, on entering into the Loan Agreement.

 

The loan is subject to penalties and termination provisions in the event of
default and other events usual in an agreement of this nature.

 

The Loan Agreement is one part of the wider investment strategy adopted by
Hellenic, where the Company is in conversations with other  funders, one
being Piraeus Bank S.A. as announced on 17 January 2024.. The Loan Agreement
and other advanced discussions represent Hellenic's steadfast approach to a
European fully indoor cultivation facility, with low overheads for the sale of
high-quality medical cannabis products into the global markets, along with
domestic sales within Greece in addition to the Company's ambition to being a
wholesale cultivator of medical cannabis flowers to big pharma for end
pharmaceutical medicines.

 

Dr Fillipos Papadopoulos, Executive Director of Hellenic Dynamics, commented:
" By securing the Loan Agreement Hellenic Dynamics SA will significantly
reduce the median cost of financing for the Company in its growth stage. The
commitment to a 15-year loan underpins the approach that the Company is taking
to deliver high quality cannabis products into the global markets. We are also
in advanced discussions on additional financing with a number of parties for
expedited growth and further announcements will be released to the market in
due course."

 

The Directors of the Company take responsibility for this announcement.

 

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

 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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