Medical cannabis cultivator Hellenic Dynamics Plc (LSE:HELD) has reported ‘good progress’ since its initial public offering (IPO) in December 2022, saying it is on track for its first crop in the middle of this year.
The company, which is specifically focused on the cultivation and supply of tetrahydrocannabinol (THC) dominant strains of medical cannabis flowers, is the first of its kind to be listed on the London Stock Exchange's main market.
It is developing and will operate 40,000 square metres of active THC cultivation from its facility located near Thessaloniki in Northern Greece. The first-phase fit-out is well underway.
The operation benefits from one of the lowest costs of power in Europe as well as having its own running water supply, meaning that utility costs are significantly below standard market rates.
Furthermore, the facility is located in an area that has one of the lowest rates for skilled and semi-skilled labour in Europe.
Ahead of the first harvest in mid-2023, Hellenic Dynamics said it was in advanced discussions with licensed medical cannabis distributors outside Germany for additional off-take agreements and wholesale prices of medical cannabis flowers in Europe are holding strong.
In a statement, the company's chief executive Davinder Rai said: "We have continued to make good progress since our IPO and our cultivation and processing facility in Greece is on track to be ready for the first harvest to take place in the second quarter of this year.
“With discussions with new potential off-take customers ongoing, and the price of THC-dominant medical cannabis holding firm, we look to the future with confidence and can't wait for our products to start changing patients' lives for the better during 2023."