26th Nov 2024 12:20
(Alliance News) - Hellenic Dynamics PLC on Tuesday said a petition for the company's compulsory liquidation had been filed by one of its shareholders.
The UK-based supplier of medical cannabis products said the shareholders filed the winding-up petition on November 1, claiming a total sum of GBP32,274.
The petition is due to be heard in the High Court on December 18; however Hellenic Dynamics said it will make an application for dismissal prior to the court date.
According to the company's directors, the shareholder is not a creditor of Hellenic Dynamics, and the petition therefore "amounts to an abuse of the process of the High Court".
This is the latest in a series of legal woes for the cannabis cultivator, which exports tetrahydrocannabinol-dominant dried cannabis flowers and flower extracts from its growing facility in northern Greece.
Hellenic Dynamics shares were suspended from trading on August 1 at the company's request. The firm said it could not publish its results for the 2024 financial year by the July 31 deadline, due to being unable to provide its auditors with the necessary information, including confirmation of receipt of a EUR1.0 million long-term loan.
Leeds-based law firm Hill Dickinson LLP in August brought a winding-up petition against Hellenic Dynamics, relating to a GBP85,084 debt owed by the company.
Joseph Culliver, a non-executive director of the company, loaned Hellenic Dynamics GBP5,000 at a 5% annual interest rate. Also in August, Executive Director Filippos Papadopoulos entered a EUR11,000 cash facility deal with one of the company's subsidiaries to support its working capital needs.
Hellenic Dynamics agreed to repay the debt, and instructed its solicitors to remove the petition on August 14. However, repayment was reliant on receipt of the EUR1.0 million loan, which was still delayed on November 15, when the company said it would explore alternative financing options.
The firm has not specified whether the November 1 petition was submitted by the same party that filed the initial winding-up request in August.
By Holly Munks, Alliance News reporter
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