HUI Hydrogen Utopia International Plc

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.  

9 December 2024

Hydrogen Utopia International PLC

 (the 'Company' or 'HUI')

Ohrid Organics - €450,000 Sale and Update 

Hydrogen Utopia International PLC, a company specialising in converting non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials or distributed renewable heat, is pleased to inform shareholders that Ohrid Organics DOO ("Ohrid Organics DOO"), based in North Macedonia, has completed the sale of €450,000 worth of THC medical cannabis. Payment will be in advance of shipment. Ohrid Organics DOO is the subsidiary of Ohrid Organics Limited ("Ohrid Organics"), the UK holding company.

As announced on 2 January 2024, HUI exercised its option to acquire 49 % of Ohrid Organics, anticipating Ohrid Organics to generate substantial future cashflows for its shareholders and which HUI would utilise in developing its pipeline of waste plastic to hydrogen plants.  HUI understands that further sales are expected to take place, particularly due to the following developments:

Ohrid Organics DOO holds a license to operate the largest cultivation area in North Macedonia, giving it the leverage needed to meet the rising demand for medical cannabis in Europe and across the globe. Over the course of this year, Ohrid Organics DOO has focused on expanding its facilities and has increased its cultivation area by 50%. It now operates six greenhouses, each covering 500 square meters, for a total cultivation area of 3,000 square meters. Even with this expansion, Ohrid Organics DOO's facility only utilises 17% of Ohrid Organics DOO's licensed area. The licensed area has the potential to accommodate up to 37 greenhouses, enabling production of up to 30 tonnes per year across 20,000 square meters of cultivation area. Over the past six months, Ohrid Organics DOO has trialled strains from certain selected breeders, collecting data on the strains' performance in Ohrid Organics DOO's environment and selecting those strains capable of delivering the targeted effects.

The genetic strains selected and cultivated at the start of 2024 did not perform as positively as expected. Ohrid Organics DOO underwent significant changes within its management, bringing in top-tier performers fully committed to the facility's success. These changes, while necessary, caused delays in commercial production and impacted the overall target output for the year, resulting in the postponement of the anticipated year-end turnover. HUI understands from the board of Ohrid Organics that the challenges have been identified and resolved. Additionally, the board of Ohrid Organics confirmed that the three strains currently being cultivated on a commercial scale by Ohrid Organics DOO are expected to deliver consistent quality and achieve the desired effects. Ohrid Organics anticipates that the delay in turnover for 2024 will be partially offset in 2025.

Several structures for the acquisition of 49% of Ohrid Organics are being considered, and HUI is exploring its options.

Aleksandra Binkowska, CEO of HUI, commented: "I am delighted  with the €450,000 sale of  Ohrid Organics' medicinal cannabis, marking a step forward for HUI in achieving its objectives. While I acknowledge that this figure falls short of expectations, I am confident that we will make up for it next year thanks to the outstanding new management team and the valuable relationships recently established. The original agreement between HUI and Ohrid Organics stipulated that HUI would not take part in managerial decisions. However, circumstances necessitated our intervention and significant changes were implemented, including the removal of underperforming individuals from the management in order to safeguard shareholder value. These individuals contributed to delays, but we are now back on track with a highly capable team, fully focused on regaining lost ground and ensuring maximum returns. With highly experienced professionals now leading the effort, Ohrid Organics DOO successfully completed its first sale and secured a contract that is expected to offset the losses incurred in 2024 and accelerate the Ohrid Organics program. HUI and Ohrid Organics remain closely linked, with HUI's primary objective being the funding and development of its first plastic waste-to-hydrogen facility, which continues to be our primary focus."

For further information, please contact:

Hydrogen Utopia International PLC

Aleksandra Binkowska           

+44 20 3811 8770     

Alfred Henry Corporate Finance Limited (LSE Corporate Adviser)

Nick Michaels/Maya Klein Wassink                                                  

+44 (0) 20 8064 4056

Novum Securities Limited (Broker)                                                                    

Jon Belliss/Colin Rowbury                              

+44 20 7399 9400

About Hydrogen Utopia International PLC

HUI aims to become one of the leading new European companies specialising in turning non-recyclable mixed waste plastic into carbon-free fuels, new materials or distributed renewable heat.

A HUI facility uses non-recyclable mixed waste plastic as feedstock and turns it into syngas from which new products and energy can be produced. HUI anticipates that its revenues will be derived from a variety of sources, dependent upon location and configuration of the HUI facilities, including the sale of syngas, hydrogen and other gases, electricity and heat sales, and the payment to it of fees for a given quantity of non-recyclable mixed waste plastic received at a HUI facility.

HUI will target areas where there is significant private sector interest or potential, financial backing is accessible and or where substantial EU and/or government funded sources of grants and loans are or may be available. The global increase in fossil fuel-based energy prices reinforces the need for alternative, price competitive energy sources, which HUI's business model can provide.

The pressing need to deal with growing amounts of waste plastic combined with a real momentum in the use of hydrogen from renewable sources may pave the way for a rapid deployment of and investment in HUI facilities.