22nd Apr 2024 14:36
(Alliance News) - Hellenic Dynamics PLC on Monday said it had entered an agreement to receive EUR1 million worth of funds.
The Greece-based cultivator and supplier of pharmaceutical standard medical cannabis products said it subsidiary, Hellenic Dynamics SA, obtained funding from an undisclosed European investor focused on health products.
Hellenic Dynamics has secured a 15-year loan agreement worth EUR1 million with an annual interest rate of 3.5%, although for the first six months, repayments will be made on an interest only basis.
The loan agreement has been guaranteed by a leading insurer through an insurance policy, with Hellenic Dynamics paying a fee equating to 2.5% of the total loan amount.
Executive Director Fillipos Papadopoulos said: "By securing the loan agreement Hellenic Dynamics SA will significantly reduce the median cost of financing for the company in its growth stage...We are also in advanced discussions on additional financing with a number of parties for expedited growth and further announcements will be released to the market in due course."
Proceeds from the loan are to be used to complete the development of company's 195,596 square metre facility in northern Greece, alongside additional working capital requirements.
Hellenic Dynamics shares were up 12% to 2.62 pence each in London on Monday afternoon.
By Elijah Dale, Alliance News reporter
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