TIDMHELD
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 EUR43.3 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
EUR43.3 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
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed 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 re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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