Hydrogen Utopia International PLC (LSE:HUI, OTCQB:HUIPF) has highlighted its move into the medical cannabis industry as likely to create “significant value” for shareholders after a tough first half.
Having taken out an option over a 49% stake in medical cannabis cultivator owner Carbon Capture and Sequestration earlier this year, the company said in its interim results that the move would “protect” and “create” shareholder value.
“What I anticipate is a cash runway, which translates into independence. Independence from reliance on shareholders' contributions, protecting their value,” CEO Aleksandra Binkowska said.
“Watching the market, I expect Ohrid Organics [previously Carbon Capture and Sequestration] to create very significant shareholder value.”
The London-listed firm repeated that the move would help fund its core business, which seeks to build the world’s first plastic waste-to-hydrogen plant.
As tough macro conditions persist, operating loss increased from £583,878 to £866,941 on higher administration costs over the six months to June.
Cash sat at £2.1 million at the period end, down from £3.2 million last time around.
Having also appointed ex-SAS member Simon Mann as company chairman, Binkowska said measures had been taken to ensure the company thrives through economic uncertainty.
Looking ahead, Hydrogen Utopia expressed confidence in the strategy, adding ongoing and future projects were moving along as expected.