UK SPAC chairman Peter Jay said both parties in the reverse takeover (RTO) of medical cannabis group Hellenic Dynamics are “committed to completing the agreement at the earliest possible date”.
Jay said the previously-flagged hold-up wasn’t related to the transaction or red flags raised by the regulator, but rather the fact that Hellenic's business will be undertaken in the German and Greek markets, which he said had “substantially increased the due diligence requirements of the transaction”.
“In addition, as Hellenic will be one of the first medicinal cannabis cultivators to undertake a London listing, the Financial Conduct Authority, understandably and appropriately, requires an extended period to consider and review such an application due to the nature of Hellenic's product and to review the company's systems, procedures and controls and licenses,” the UK SPAC chairman added.
The RTO values the company at a minimum of £11.76mln and Hellenic at £45.2mln.
The update was provided in half-yearly results in which the group transformed from a trading company to a shell. The loss for the six months ended September 30 was £261,000.