TIDMHELD
RNS Number : 4750C
Hellenic Dynamics PLC
13 June 2023
Hellenic Dynamics plc
("Hellenic Dynamics" or the "Company")
Signing of MoU with Demecan Holding ("Demecan")
- Demecan is the only vertically integrated independent German
company licensed to grow, process and distribute medical cannabis
in Germany
- MoU is the first commercial agreement under Hellenic's
expanded strategy into contract cultivation
- Advanced discussions underway with a number of other licenced
European distributors for POD agreements
London, 13 June 2023: Hellenic Dynamics plc (LSE: HELD), the
specialist cultivator and supplier of tetrahydrocannabinol (" THC")
dominant strains of medical cannabis flowers, announces it has
signed a Memorandum of Understanding ("MoU") with Deutsche
Medizinalcannabis GmbH which trades as Demecan Holding for the
cultivation and supply of medical cannabis flowers.
Demecan is the only licensed independent German company that
covers the entire value chain for medical cannabis from cultivation
through processing to distribution. Demecan works with producers of
medical cannabis worldwide to ensure a reliable and continuous
supply of medical cannabis for patients in Germany.
This MoU represents the first commercial agreement for Hellenic
Dynamics under the expanded contract cultivation strategy it
announced last week whereby it will allow, for the first time,
medical cannabis distributors to have their own dedicated white
label cultivation facilities by way of a Hellenic Dynamics Product
Outsourcing Development ("POD") agreement.
Under the MoU, Hellenic Dynamics will grow and supply medical
cannabis flowers from Demecan provided cultivars in an indoor
cultivation area of 1,000 square meters capable of producing circa
1,200 kg of medical cannabis flowers per annum under Good
Agricultural and Collection Practice ("GACP"). Demecan will then
process the delivered flowers in its own EU-GMP facilities for
onward sale to the German market. It is anticipated that the
binding agreement with Demecan will be in place in line with
Hellenic Dynamics' cultivation strategy, as per the Company's
previous announcement.
Hellenic Dynamics is also in discussions with a number of other
licensed European distributors, who have their own GMP processing
facilities for similar POD agreements. The model allows
distributors to fully define the specific type of medical cannabis
they want to receive using either Hellenic Dynamics' strains or the
distributor's own strains. Hellenic Dynamics will then cultivate
and despatch directly to the distributor, branded under the
distributor's chosen brand name. It is currently anticipated that
customers will be contractually obliged to take a POD area for a
minimum of two years.
This outsourced model means that Hellenic Dynamics handles the
entire fit out of the POD and all cultivation requirements, with
oversight from the distributor if they so wish. Hellenic Dynamics'
distributor customers can also benefit from certain of the
Company's relationships, for example the recent MoU agreement it
has with ELGO-DIMITRA, the Institute of Plant Breeding and Genetic
Resources located near Thessaloniki in Greece, which may enable POD
owners to have their products registered and IP protected in
Europe.
Under this strategy of white label cultivation, Hellenic
Dynamics intends to have a select number of distributors utilising
a POD agreement, while the Company will continue as planned to
produce its own crop of medical cannabis plants. The medical
cannabis markets in Europe are rapidly evolving and in the last 18
months cultivators have been struggling with soaring energy costs.
In addition, many distributors have been building their own EU-GMP
facilities. As mentioned in the last Company announcement, Hellenic
Dynamics, in adapting with the market changes, has seen fit to
expand its strategy to include the production of customised GACP
products cutting down its production cost and the time to deliver
products, which should enhance the business turnover and generate
earlier cash flows. This strategy also allows the Company to
diversify and accelerate cash flows whilst strengthening its
relationships with a number of key distributors across Europe and
establish production at scale.
Hellenic Dynamics remains committed to excellence and compliance
across its cultivation value chain.
Further details on the POD expanded cultivation strategy can be
found at: https://www.hellenicdynamics.com/investor/#s4
Davinder Rai, CEO of Hellenic Dynamics, commented: "This POD
agreement represents another development in the future of the
Company's medical cannabis cultivation and underpins the long-term
value inherent in the business and our operating model. We can
allow distributors to grow the products they want in their own
dedicated white label cultivation areas, which we then ship to
their EU-GMP facilities for processing enabling us to widen our
client base and creating more value for our shareholders."
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.
www,hellenicdynamnics.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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END
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June 13, 2023 02:00 ET (06:00 GMT)
Hellenic Dynamics (LSE:HELD)
過去 株価チャート
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Hellenic Dynamics (LSE:HELD)
過去 株価チャート
から 5 2023 まで 5 2024
