Hellenic Dynamics Share Discussion Threads

[oakridge] 13/6/2023 09:35

Hellenic Dynamics
@HellenicDynamic
·
8m
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.

More to follow.

[oakridge] 13/6/2023 09:22

"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."

[oakridge] 13/6/2023 07:59

I think we can say that there is a huge gulf in quality and content of this latest RNS vs the last one....since which I actually ended up doubling my holding amid the weakness.

A very good announcement with much to discuss.

I anticipate that those outstanding areas of uncertainty (including, for example, garth's question mark over the Operations License, above) will be duly answered over the coming weeks and months as the company advances towards cultivation. Can't believe the company wouldn't have addressed this and other points. So watch this space.

In time, HELD might just be vindicated in that the POD model they've pivoted to is indeed very well judged and provides a good fit for the direction the space will take. The license is vast, as is their site....so they would be pretty unrestricted should other companies want to follow suit. They state they are already in talks with signing other distributors to the same.

One swallow, of course, will not make a summer.....but I am anticipating a decent run of announcements as the company moves towards first cultivation, for there should be plenty of newsworthy checkpoints to arrive as they get there.

AIMO and ADYOR etc

[oakridge] 13/6/2023 07:45

Hellenic Dynamics PLC Signing of MoU with Demecan Holding
13/06/2023 7:00am
UK Regulatory (RNS & others)

Hellenic Dynamics (LSE:HELD)
Intraday Stock Chart

Tuesday 13 June 2023
Click Here for more Hellenic Dynamics Charts.
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

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: hxxps://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."

[solarno lopez] 13/6/2023 07:44

EVERTON......it most definitely IS !

[everton448] 13/6/2023 07:14

Well this looks like good news!

[garth] 12/6/2023 08:25

It is my view that if they had an operational licence we would know about it. But I guess that view is born out of long and bitter experience with AEG.

We'll see...

Best wishes,

G.

[extrader] 11/6/2023 23:27

Thanks for your quick comeback. I agree ;->

Still no clarity re whether HELD has an operational licence or not.

Maybe we should save further discussion until someone has heard back from Dev on that score ?

ATB

[oakridge] 11/6/2023 23:06

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

[extrader] 11/6/2023 22:34

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 21:39

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 20:25

🌿 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 20:24

(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 20:14

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 11:02

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

[pirates4] 09/6/2023 10:31

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 10:17

'Art with science'...

Coffee/cannabis?

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

;->

[pirates4] 09/6/2023 10:12

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

[pirates4] 09/6/2023 10:11

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

[pirates4] 09/6/2023 10:08

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

[pirates4] 09/6/2023 10:06

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

[pirates4] 09/6/2023 09:53

https://www.hellenicdynamics.com/

[oakridge] 09/6/2023 09:50

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 09:36

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 09:34

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