Hellenic dynamics is set to be the first medical cannabis cultivator to list on the LSE after entering into a binding sale and purchase agreement with UK SPAC Plc.
European-based medical cannabis cultivator Hellenic Dynamics has now entered into the agreement with UK SPAC Plc in a reverse takeover worth £45.5m.
Vice President of Hellenic Dynamics, Davinder Rai, said: “This is a major step forward for Hellenic as we look to establish ourselves as a leading cultivator of THC-dominant medical cannabis in Europe and develop specialist strains of cannabis specific to individual medical ailments.
“With patient demand for medical cannabis increasing and a willingness among governments to regulate and open up this important market we are very optimistic about our future as a listed company.”
Listing on LSE
Under the terms of the agreement, Hellenic Dynamics, which has cultivation operations based in a 200,000 square metre facility in Northern Greece, will see its aim of becoming the first European medical cannabis cultivation company to list on the LSE realised with the condition of admission to the standard segment of the Official List of the Financial Conduct Authority (FCA) and to trading on the London Stock Exchange’s main market for listed securities.
UK SPAC has submitted a first draft of the prospectus to the FCA and has made an application in respect of a Standard Listing.
Hellenic Dynamics, which manufactures, processes and sells THC-dominant dried medical cannabis flowers and extracted oils for export into the German market, aims to be a leading grower of medicinal cannabis in Europe in the next few years. The company says exports to other markets in Europe will follow soon, as well as a medicinal cannabis oil extract product for the domestic Greek market
UK SPAC chairman, Peter Jay, added: “I am delighted that the company has been able to contract to acquire this extremely exciting and impressive company which has the ambition and the potential to become one of the major growers of medicinal cannabis in Europe.”
Kanabo, a developer of both cannabis-derived products for medical patients and THC-free products for CBD consumers, entered into a Memorandum of Understanding (MoU) with Hellenic Dynamics earlier this year which will see Kanabo buy up to 1000 kg per year of EU GMP certified cannabis flowers with pre-defined THC or CBD contents.
The company said it is delighted that UK SPAC has entered into the agreement with Hellenic Dynamics: “We believe that this acquisition will help Hellenic to work towards its goal of becoming a major cultivator of medicinal cannabis in Europe.”
The acquisition is conditional on UK SPAC having the minimum cash balance of £3.92m at completion, which will be satisfied by the issuance of more than nine billion new UK SPAC ordinary shares by means of a placing. The company’s ordinary shares have now been suspended from trading on AIM.
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