Hydrogen Utopia International PLC (LSE:HUI, OTCQB:HUIPF)'s Macedonia-based investment Ohrid Organics has sold €450,000 worth of THC medical cannabis, according to a Monday trading update.
Ohrid is also negotiating additional off-take agreements, with talks ongoing with several parties. Proceeds are earmarked to support an expansion in capacity.
Currently, Ohrid operates six greenhouses spanning 3,000 square metres, with plans to scale up to 37 greenhouses across a licensed area of 20,000 square meters. This would result in potential production capacity of up to 30 tonnes of THC medical cannabis per year.
HUI noted that it had intervened, instigating a change in management at Ohrid, to help address efficiency and performance – though the disruption in operations meant overall output for the year was beneath prior targets and reduced turnover.
"I am delighted with the €450,000 sale of Ohrid Organics' medicinal cannabis, marking a step forward for HUI in achieving its objectives,” HUI chief executive Aleksandra Binkowska said in a statement.
“While I acknowledge that this figure falls short of expectations, I am confident that we will make up for it next year thanks to the outstanding new management team and the valuable relationships recently established.
“The original agreement between HUI and Ohrid Organics stipulated that HUI would not take part in managerial decisions. However, circumstances necessitated our intervention and significant changes were implemented, including the removal of underperforming individuals from the management in order to safeguard shareholder value.”
Binkowska added: “With highly experienced professionals now leading the effort, Ohrid Organics DOO successfully completed its first sale and secured a contract that is expected to offset the losses incurred in 2024 and accelerate the Ohrid Organics program.
“HUI and Ohrid Organics remain closely linked, with HUI's primary objective being the funding and development of its first plastic waste-to-hydrogen facility, which continues to be our primary focus."