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
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.