TIDMHELD
RNS Number : 2539F
Hellenic Dynamics PLC
06 July 2023
6 July 2023
Hellenic Dynamics plc
("Hellenic Dynamics" or the "Company")
Repayment of Convertible Loan Note
London, 6 July 2023: Hellenic Dynamics Plc (LSE: HELD), the
medical cannabis company based on a 195,506 square meter facility
in Northern Greece and focused on the cultivation and supply of
tetrahydrocannabinol (" THC") dominant strains of medical cannabis
flowers to the European market, announces that the Company has
received an approach from Rami Ajami, the holder of an unsecured
convertible loan note of GBP375,000 ("CLN"). The Company is pleased
to advise that it has made significant cost savings against its
initial budget for the purchase of plant and equipment which are in
excess of the value of the CLN. As a result of these cost savings,
the Company proposed to the holder to repay the CLN in full, which
Rami Ajami has accepted.
The CLN has now therefore been redeemed in its entirety.
Background
With effect from 5 December 2022, Rami Ajami, who is also an
existing shareholder, subscribed for the CLN in the Company.
Under the terms of the subscription agreement for the CLN,
conversion of the CLN would have resulted in:
-- the issue of 125,000,000 new ordinary shares ("Conversion
Shares") in the Company at GBP0.003;
-- the issue of 125,000,000 warrants at an exercise price of
GBP0.003 for a period of two years if converted within the first 9
months from admission; and
-- the transfer of 125,000,000 Top-Up Shares (as defined in the
Company's prospectus dated 14 November 2022 ("Prospectus") ) from
existing Hellenic shareholders held in escrow ("Escrow Shares"), if
converted within the first 9 months from admission.
After taking careful consideration of the recent significant
cost savings referred to above, the Board unanimously approved
proposing to Rami Ajami the repayment of the CLN in full.
Progression of the Company's strategy, as detailed in its
Prospectus and as amended by recent announcements, is therefore not
impacted by this repayment.
Furthermore, as the CLN has now been repaid rather than
converted, neither the Conversion Shares nor the Conversion
Warrants will be issued and the Escrow Shares will be returned to
the founding shareholders.
As announced on 13 June 2023, the Company continues to advance
its Product Outsourcing Development ("POD") concept and it is also
pleased to advise that it is in late stage discussions with a
number of funding sources, which include the application of a
number of grants, which, if successful, will not only provide
sufficient working capital for the accelerated construction of the
initial PODs but also place the Company in a stronger working
capital position than it was on admission.
The Company previously secured a number of unused post harvest
area equipment, as part of the final aspects of completion of its
facility which has provided significant cost savings. The Company
is on track to produce its first harvest for commercial sale, under
its existing off-take agreements, in line with its previous
announcements, within Q2 of the Company's fiscal year.
The Company will update the market with details of further POD
agreements in due course.
Davinder Rai, CEO of Hellenic Dynamics, commented:
" Given our concerted effort to preserve capital and build a
platform for growth for shareholders , as per our announcement
dated 6 June 2023, we have previously made significant savings in
the procurement of construction and equipment, thus we are in a
position to repay this CLN without any dilution to our
shareholders. Further to the Company's previous announcement dated
13 June 2023, the Company has also made an application for two
grants both domestically in Greece and at EU level along with
entering into advanced discussion with a well-known financial
provider to support the acceleration of our contract cultivation
PODs by way of a capital financing instrument."
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.
The Directors of the Company take responsibility for this
announcement.
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 +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 specifically involved in the cultivation and sales of
THC-dominant medical cannabis products which 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
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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July 06, 2023 11:55 ET (15:55 GMT)
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