REG - Hellenic Dynamics - Memorandum of Understanding with ELGO-DIMITRA

Hellenic DynamicsAnnouncement

22/03/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230322:nRSV7774Ta&default-theme=true

RNS Number : 7774T  Hellenic Dynamics PLC  22 March 2023

22 March 2023

 

Hellenic Dynamics plc

("Hellenic Dynamics" or the "Company")

 

Memorandum of Understanding with ELGO-DIMITRA - Institute of Plant Breeding
and Genetic Resources of Greece

 

Hellenic Dynamics (LSE: HELD) is pleased to announce it has entered into a
five year memorandum of understanding ("MoU") with ELGO-DIMITRA, the Institute
of Plant Breeding and Genetic Resources located near Thessaloniki, Greece
which sets out the intentions of ELGO-DIMITRA and the Company to collaborate
on projects and research.

 

ELGO-DIMITRA is a public sector entity functioning under the Greek Ministry of
Agriculture, Development and Food, focusing on agricultural research,
agricultural product quality and certification. The key actions proposed in
the MoU include the research, cultivation, improvement evaluation and
utilisation of specific strains of medical cannabis genetics. It is the
intention that, through this research, new varieties and species of cannabis
with improved yield, quality and adaptability will be created.

 

In the event that the parties agree to jointly undertake specific projects or
collaborations, in the context of the MoU, a separate written contract will be
drawn up which will define the obligations and responsibilities of each party.

 

Hellenic Dynamics believes that by jointly researching medical cannabis
flowers with ELGO-DIMITRA at the Company's facility, Hellenic may be able to
exploit the joint research in seeking registration of its specific medical
cannabis tetrahydrocannabinol ("THC") dominant genetics onto the Greek
national genetics database. This in turn could lead to Hellenic Dynamics in
future gaining Intellectual Property ("IP") protection on certain genetics,
which the Company believes could be enforceable across Europe.

 

The ambition of Hellenic Dynamics remains to define certain THC dominant
medical cannabis flowers cultivated at the Company's production facility in
Greece against specific pain and other indicators in patients. This
cooperation agreement with ELGO-DIMITRA could add significant upside to the
Company and help accelerate its ambition if efficacy in patients can be
identified.

 

This MoU, is in addition to Hellenic Dynamics's near-term plan to be the
dominant cultivator of competitively priced THC dominant medical cannabis
flowers in Europe, where the  rapidly growing medical cannabis markets are
expected to reach €43.3 billion per annum by 2027.

 

In December 2022, Hellenic Dynamics became the first medical cannabis
cultivator to list on the London Stock Exchange's main market for listed
securities.

 

Davinder Rai, CEO of Hellenic Dynamics, commented:  "This MoU with
ELGO-DIMITRA is very exciting as it means the Company could gain IP protection
on its strains of THC medical cannabis flowers which could be incredibly
valuable , especially if efficacy can be shown in patients against specific
pain indicators."

 

Professor Serkos Haroutounian, President of the board ELGO-DIMITRA,
commented:

"The experienced and specialized staff of ELGO-DIMITRA's Research Institute
provide knowledge and contributes to the development of the agricultural
production of Greece. With the MoU signed, the Institute of Plant Breeding
and Genetic Resources, which deals with the experimental cultivation of
medicinal cannabis, intends to proceed, in cooperation with Hellenic Dynamics,
with the creation of new varieties of medicinal cannabis, the control of
stabilisation of genetic material and selection of mother plants, the study of
innovative systems cultivation in greenhouses and closed chambers as well as
in the submission of new research proposals."

 

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 low cost 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 recent years.  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.

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCNKDBNCBKDPNB