Hellenic Dynamics Share Discussion Threads

[oakridge] 11/6/2023 22:06

Extrader, your own HELD 'exit post' was altogether better!

[extrader] 11/6/2023 21:34

In the interests of balance and DYOR, folk may wish to see a contrarian ie negative view over on lse from Johnny Lawrence.

He appears to have some industry experience. At the very least, HELD/Rai should be able (and willing) to refute his critique.

For the avoidance of doubt : I don't know him and have no financial interest in the outcome - I'm a bystander who's now looking to educate himself about a potentially significant new industry.

ATB

[gozo] 11/6/2023 20:39

Cheers Oak I added last week after a clearer explanation of our direction from the ceo.I found myself asking the question of whether the share price will be higher in the future.....I think it probably will so bought a few more.NAI

[oakridge] 11/6/2023 19:25

🌿 Business Update from Hellenic Dynamics! 🌿

We're delighted to announce a game-changing expansion in our cultivation strategy. As the medical cannabis industry evolves, we're adapting to market conditions and demand, accelerating revenue generation and setting ourselves apart. 🚀

Hellenic Dynamics has conducted a comprehensive review, and in alignment with industry standards and evolving certifications, we have made an important decision regarding our cultivation facilities. While our initial plan included investing in a EU-GMP facility, we have strategically shifted gears to better align with the changing landscape. Instead, we will focus on the bulk cultivation of cannabis flowers under GACP certification for our cultivation and supply of flowers to our EU-GMP certified distributors. This approach allows us to save time and expense while maintaining our commitment to excellence and compliance. 💯✅

To learn more, hit the link below, and hear our CEO Davinder Rai discuss more about our innovative cultivation strategy. 👇📽️

Stay tuned for further updates as we shape the future of medical cannabis together! 🌿🌍

Watch the full video here -

[oakridge] 11/6/2023 19:24

(My bold).




Earlier this week, we announced an extension in our cultivation strategy as we look to pioneer ‘Cannabis 2.0’. Here are the key details ⬇️

🌍 The Medical cannabis market in Europe is rapidly evolving.

🌱 In the last 18 months, cultivators have been struggling with soaring energy costs that have put many out of business, whilst distributors have been building their own EU-GMP facilities, putting into question the need for Hellenic to develop a GMP facility of their own when our customers are already doing so.

💡 In response to this, Hellenic has identified an opportunity that they are uniquely placed to pounce on.

🔬 For the first time, we are offering distributors the opportunity to have their own dedicated cultivation facility by way of a Hellenic POD (“Product Outsourcing Development”).

🏢 Each POD is a fully indoor cultivation area of 1,000 square meters and is capable of producing circa 1,200 kg of medical cannabis flowers per annum.

🤝 Under the Hellenic POD strategy distributors can now fully define or supply the specific strains of medical cannabis they are looking to receive, which Hellenic cultivates and sends out directly to the distributor, branded under the distributors chosen brand name. Each POD can be taken for a minimum of two years.

💰 For distributors, only our facility offers such a low cost of production with such strong expertise, and for us, this new model removes the significant cost of building our own GMP facility, whilst allowing us to focus on leveraging one of our strongest assets, our site in Greece.

🏆 This simplifies our business model, saves us time and expense while maintaining our commitment to excellence and compliance.

🚀 Hellenic is well placed to become the engine room for the European Medical Cannabis market, and we have more exciting announcements on this latest extension soon.

Want to find out more? Head to our website to hear our CEO discuss the extension in more details.

[oakridge] 11/6/2023 19:14

Nappers, it is my honest view/opinion that 'regular news flow showing progress towards cashflows' etc, as you put it, will indeed be forthcoming and is exactly what we will see at HELD.

Cultivation is scheduled in late summer and we are very nearly at mid-summer.

Therefore in between now and then - a fairly short space of time - there are a number of key events and drivers which we'll hopefully see. As the dust settles and having discussed with certain other PI's this weekend, there is a feeling that the change of tack the company has made is a genuine response to the evolving nature of the Cannabis space and one where the core assets of the company (scalability of site and size of the license) can be leveraged perhaps sooner and, crucially, at lower initial (and ongoing) cost than they might have been.

A lot will depend on how many distributors known to HELD (and I can only think that, by now, they know many) are actively looking for the scale and kind of arrangement HELD can provide. We know the market is growing rapidly and we know that, in principal, distributors (of all kinds) like certainty, flexibility and control over their supply chains (when they can find it). So, to me it certainly makes sense in principal that distributors of volume will want to take such a step into the vertical and so gain reliable access to exactly the type and volume of product to suit their shifting needs. If HELD can offer them this at an attractive price point, I do not see why they would not take it.

HELD's shift in addressing this evolving space however(part of which is regulatory in nature) served to rattle an expectant, onlooking market whom had anticipated a somewhat different update to the one it got. As I have previously said, there was probably a proportion of 'sell on news' holders waiting for a first harvest RNS a few months sooner than it will now come....as well as those who sold without being given the full picture of the new approach.

I of course need to remain critical of my own thinking and reasoning but my reaction was not to hit the sell button during or after a 30% retraction but instead pause for clarity, assess and BUY the weakness; the idea, as ever, is to buy low, sell high. The weakness could be very temporary if the company appears again with a much more complete update and, in time, a number of checkpoints are RNS'd.

The update last week after all, seems to point to 'more to come, watch this space' ..... in that RNS they openly stated - twice - that further updates will soon follow. I think the companies most recent activity on LinkedIn and Twitter may in part be a recognition of the market's need for further detail and for me at least, they offer a further reassurance that it will come.

Rai's subsequent and somewhat upbeat and fairly polished video update, adding some detail to the POD model and the fact that the company has twice made reference to embracing / exploiting the core asset of 'scale' adds further encouragement.

I'll post some of the recent LinkedIn material here shortly...

AIMO and NAI as ever.

[nappers] 09/6/2023 10:02

All will be forgiven if we now see regular newsflow showing progress towards cash flow - off take agreements, cultivation etc

[pirates4] 09/6/2023 09:31

Off topic for a bit..https://www.nytimes.com/2023/03/31/arts/design/portrait-of-omai-getty-national-portrait-gallery.html

[extrader] 09/6/2023 09:17

'Art with science'...

Coffee/cannabis?

hxxps://www.linkedin.com/feed/update/urn:li:activity:7071820258419855360/

;->

[pirates4] 09/6/2023 09:12

https://www.hellenicdynamics.com/investor/#s4

[pirates4] 09/6/2023 09:11

https://www.hellenicdynamics.com/investor/?s=09#s4

[pirates4] 09/6/2023 09:08

Besides allthat mentioned in the video, it shouldn't be very difficult to obtain a EU-GMP.status.

[pirates4] 09/6/2023 09:06

In the video davinder ceo, mentioned 'art with science '. Any takers o that comment.

[pirates4] 09/6/2023 08:53

https://www.hellenicdynamics.com/

[oakridge] 09/6/2023 08:50

I don't think the shift in strategy made perfect sense the other day, as investors tried to understand the reasoning, all at a point in time when they had been expecting to click on, open and read a very different RNS!

The video on the website today however certainly helps bring some understanding and perspective.

If distributors have implemented EU-GMP, then it seems clear to me that they will be relying on GACP flowers from a few key, large growers. That, imo, is the shape the market would have always taken anyway. Rai states that of all the smaller licenses granted in Greece, only a few, as of today, are emerging as viable outfits....with most of the smaller players mothballed. It seems likely that you are going to need scale to compete. HELD have that, or at least have a door open to that, what with the size of their license and a site which matches it.

The market may actually mature and see consolidation sooner than anticipated. Ultimately there will probably end up being only a handful of pan European growers. The smaller firms will struggle and close, the larger ones, with larger facilities and licenses (such as HELDS) will get bought out and consolidated imho.

I guess what we should be grateful for is that HELD didn't already shell out a lot of time and money on EU-GMP when an evolving space now deems they don't necessarily have to.

The company still appears to be well on target for first cultivation late summer which really isn't too far at all from my own personal timetable of events, (as I had always interpreted Q2 to mean July - Sept)....so this particular element hasn't rattled me like it has some others. And just perhaps with the money they've saved on EU-GMP we might see a bigger initial Phase1 grow than we had originally anticipated.

We'll see. Six months in to my 12 month assessment, so all to play for.

GLA and NAI etc

[extrader] 09/6/2023 08:36

Hi Oakridge,

Agreed the RNS was rushed and confusing/misleading.
Which contrasts with Rai's polished performance on the video...and the now-revamped and updated, working website.

There's now also an explanation of sorts for the pivot, which may explain the shifting of first harvest timings...and may explain the (only recent attempts at) purchase of equipment.

This still appears to be outstanding :

(2) I have a question about the status of HELD's operational licence, 1 of the 2 it needs : From RNS dated 2nd August 2021:

"Greek legislation describes a two-stage licensing process; the first being an installation licence and the second an operational licence.... Hellenic holds a facility installation licence (the "Licence"), granted on 24 October 2019, which permits it to construct and establish a cannabis processing and production facility. Hellenic is in the final stages of completing the necessary works to apply for an operational licence."

So they had the installation licence but not the operational licence (surely getting it would be newsworthy and RNSable?).

The last mention appears to be here

hxxps://ukinvestormagazine.co.uk/standard-reversal-hellenic-dynamics-cultivates-licence

which said (as at 7/12/2022) ..."The company still has to obtain an operations licence in Greece so that it can sell the cannabis flowers and extract that it will produce..."

Someone said they'd written a while back and had no reply.

Maybe that too has been 'overtaken by events' and it'll be the distributors' job, if it's a Regus model, with HELD providing the facility and the distributors 'owning' whatever's produced ?

Not sure how that would work from legal, accounting or commercial perspective.

I'll stay on the sidelines.

[jasko] 09/6/2023 08:34

Thanks Oakridge, excellently put across to make sense of the shift in strategy

[pirates4] 09/6/2023 07:48

Good tweets.

[oakridge] 09/6/2023 07:46

"which will see Hellenic Dynamics harnessing its scale and low cost operating model in a way that it anticipates will accelerate revenue generation and provide an opportunity to its customers. Such a strategy has not yet seen in the cannabis space to date. This modified strategy and operating model, details of which are set out below, is different and disruptive in comparison to the Company's peer group and is designed to match the rapidly evolving regulated medical cannabis market in Europe."

harnessing scale....accelerate revenue generation....provide opportunity to its customers......designed to match the rapidly evolving regulated cannabis market.

It's a pity the original RNS wasn't fuller, with more meat on the bone.

As I previously posted, the market was also anticipating a very different update (one in which, to a degree, it would have sold into anyway) and not the curve ball we got.

I think there has been an overreaction and the shares are looking oversold and still with a potential raft of upbeat news and checkpoints to come, I have added.

[oakridge] 09/6/2023 07:34

Growing specific strains for distributors or companies who are heavy on the research and clinical findings, but who are light on the ability to scale and produce quantities at competitive levels. That perfectly sums up companies like CEL and other more pharmaceutically minded companies, who do not stand a chance of growing competitively without either significant investment or outsourcing to those who can do it at scale in a lower cost country.

Interesting.

[oakridge] 09/6/2023 07:23

We've been told in previous RNS' that the off take agreements the company has into Germany are good for around 2 years of supply (using HELD's phased approach).

Now, it could be that with the shelving of EU-GMP (which, at this point, wouldn't add huge margins to the sale price), they propose to go bigger, sooner.

Phasing up sooner might perhaps be possible with the money they've saved (both on the GMP process and in the successful procurement of s/h equipment).....which might relate back to Haffner's post, which someone on here highlighted.

The RNS wasn't particularly well communicated granted but amid the dust, I am seeing some sense emerge from the shift in strategy and my guess is we'll find the company back in front of the market before too long with more info.

AIMO ADYOR etc

[solarno lopez] 09/6/2023 07:22

They will Oakridge, they will

[oakridge] 09/6/2023 07:18

Everton - there's a much longer 'talk to camera' missive by D.R. on the company website. Follow the link off HELD's twitter thread.

The shares should start to find some support from here imo. They are on a 30% sale at present.

Will post more on the strategy shortly....but if you read my post from the other day where I talk about the lack of capacity other cannabis companies have (people like CEL and so on), it seems I might have been on the money when I suggested a potential route could be for HELD to become a vast 'contract' grower....

More to follow..

[oakridge] 09/6/2023 07:15

Edited below..

[ashleyjv] 09/6/2023 07:15

Cheers Everton