Hellenic Dynamics
Hellenic Dynamics has announced a further delay in the receipt of a long-term €1m loan, which has already led to the delay in the publication of its full-year results and the suspension of its shares.
The loan in question was first agreed in April 2024, when the medical cannabis cultivator announced that it had secured a 15-year, €1 million loan agreement with an unnamed European investment firm.
The loan, with a 3.5% annual interest rate, was initially intended to be used for working capital and expanding cultivation capacity at Hellenic’s facility in northern Greece.
In early July, Hellenic published an update stating that the receipt of the loan had been delayed from its initially intended date of June, and was now expected during July, due to ‘anti-money laundering procedures’.
Furthermore, the company said that it was seeking additional funding of €1.25m in order to finalise the construction of its facility.
As Business of Cannabis reported in August, Hellenic’s financial situation then further deteriorated as the loan was further delayed, seeing Hill Dickinson file a ‘winding-up’ petition due to an outstanding debt of £85k.
Two weeks later, Hellenic secured two small loans from its directors to make an initial and immediate payment to Hill Dickinson, which subsequently withdrew the winding up petition.
However, as the company was yet to receive its long-awaited loan, it stated that it was unable to publish its FY24 results by 31 July 2024, seeing its stocks suspended from the London Stock Exchange.
On August 21, the date of receipt on its loan was pushed back yet again, this time ‘due to procedural matters relating to a change in bank accounts by the lender’.
In its latest update on the ongoing situation published this week, Hellenic said the funding ‘has been further delayed due to procedural matters pertaining to the lender’.
“The Company has not received a confirmed date for the receipt of the funds, but remains confident that progress is being made. The Company will update the market when it is in a position to do so.”
Ananda Developments
Ananda Devlopments has signed a contract with a leading Australian contract research company to conduct further clinical trials on its flagship CBD compound, MRX1.
MRX1 is already set to be used in a number of Phase 2 clinical trials in the UK, following the company’s acquisition of MRX Medical Limited for £2m in March 2023.
These two Randomised Control Trials (RCTs), which represent the gold-standard for studies seeking prescription on the NHS, are being conducted by the University of Edinburgh and have already secured £1.55m in funding to explore its effectiveness in treating endometriosis-associated pain and CBD on chemotherapy-induced peripheral neuropathy.
Now, the company is set to collaborate with Australian firm Southern Star Research to conduct another Phase 1 clinical trial to evaluate MRX1’s pharmacokinetic profile, tolerability and safety in healthy volunteers.
The company states that this trial is particularly important as it will collect essential data regarding how the compound is absorbed, distributed, metabolised and secreted by humans, alongside the safety and tolerance levels following both single and multiple doses.
Furthermore, it will serve as a core element for future clinical trials and regulatory filings, with key applications expected for both the UK’s Medicines Healthcare products Regulatory Agency (MHRA) and the US Food and Drug Administration (FDA).
MRX1, an oil-based oral CBD formulation, will be given to 20 healthy volunteers who will be monitored closely for six days.
According to Ananda, the study will provide both strategic and financial advantages, given Australia’s reputation for conducting robust Phase 1 trials and its government’s offering of generous tax incentives for R&D initiatives, including a 43.5% rebate on eligible research costs.
“This study represents a significant milestone in MRX1’s journey to market, providing us with key data for MRX1’s licensed drug development,” Melissa Sturgess, CEO of Ananda, said.
“Southern Star Research’s deep expertise in clinical research, particularly in the field of cannabinoids, will complement our own capabilities and accelerate the development of MRX1.”
Dr. David Lloyd, Managing Director of Southern Star Research added: “The therapeutic potential of CBD is still yet to be fully discovered, and we hope that our collaboration with Ananda will further support the advancement of MRX1 and the wider acceptance of CBD as a therapeutic solution within mainstream health.”
Flora Growth
Flora Growth had further expanded its foothold in the booming German market this week, announcing a new partnership with e-commerce platform Flowzz.com.
Under the new agreement, Flora will be granted a dedicated e-commerce store on Flowzz’s platform, featuring a ‘comprehensive product line’ including cannabis strains, cannabis flower, and vessle products.
The NASDAQ-listed international cannabis company will also have ‘full exclusivity’ for accessories, cannabis seeds, cuttings and seedlings on the plaform.
Flowzz will be responsible for the creation and management of the page, while Flora will handle order fulfillment.
“German pharmacists, doctors and consumers have relied on Flowzz and its e-commerce engine to educate and purchase cannabis products,” Flora Growth’s CEO Clifford Starke said.
“By leveraging the Flowzz advanced e-commerce platform, we can reach a broader audience and enhance our customer engagement in Germany. This partnership highlights our dedication to growth in the digital space.”
It comes just weeks after Flora announced plans to list of the Frankfurt stock exchange, in an effort to ‘provide a path for new European investors to gain exposure to the company in addition to increasing our liquidity and trading’.
