Hellenic Dynamics, a leading medical cannabis company, experienced a decline in its shares following the announcement of a new loan facility aimed at accelerating its cultivation plans and executing its expansion strategy.
Shares Plummet
As of 0800 GMT, Hellenic Dynamics shares were down 0.01 pence, representing an 18.5% decrease from the previous value of 0.06 pence.
Loan Details
The company recently entered into an unsecured mezzanine loan facility with financial institution RiverFort Global Opportunities. The facility has a 36-month term and provides Hellenic Dynamics with $3 million in funds. The loan will be dispersed in two installments: an immediate advance of $450,000 and a subsequent advance of $300,000 within the next 150 days.
Interest and Fees
Hellenic Dynamics revealed that the loan carries an annual interest rate of 15%, with payments made on a quarterly basis. Additionally, each advance incurs a drawdown fee of 6%.
Repayment Options
The London-listed group has the flexibility to repay the loan either through cash or via the issuance of new shares. As part of the agreement, Hellenic Dynamics granted the lender approximately 4.2 million warrants at a price of 9.884 pence per share for a period of three years. This represents a 40% premium compared to the volume-weighted average price over the previous five days.
Future Plans
To proceed with its expansion and capital reorganization, Hellenic Dynamics will seek shareholder approval for a consolidation of existing shares and introduction of new ones. The company plans to request a general meeting for this purpose.
