(Alliance News) - Hellenic Dynamics SA shares fell on Tuesday after the medicinal cannabis cultivator announced an operational strategy change.

Hellenic Dynamic shares were down 27% at 0.12 pence each in London on Tuesday morning.

Hellenic said it will no longer pursue EU good manufacturing practices certification, the most "intensive" green light process for any medical cannabis cultivator to achieve, according to the company.

EU-GMP certification also has "very little advantages for end sales price of products".

"As the industry enters 'cannabis 2.0' many medical distributors have built their own EU-GMP facilities within their licensed distribution buildings across Germany as have other potential customers in the other markets that Hellenic Dynamics wishes to sell its products into. For this reason, the company has decided not to invest considerable funds and time into the construction and certification of an EU-GMP facility in the current phase of its development. Hellenic will instead concentrate on the cultivation and supply of [good agricultural & collection practice] flowers to its EU-GMP certified distributors, saving the company considerable time and expense. This again shows the evolving nature of the European cannabis markets," Hellenic said.

In addition, Hellenic said it is on track to have its first tetrahydrocannabinol cultivation underway this summer in northern Greece.

The London-based firm said the 195,506 square metre facility is capable of producing over 54,000 kilograms per year of dried medical cannabis flowers in its 40,000 square metre cultivation area when in full production. This makes it one of the largest THC cultivation areas in Europe, Hellenic Dynamics said.

The THC market is expected to reach EUR43.3 billion per year by 2027.

The company also said it secured significant discounts from its equipment supplier, as well as unused second hand equipment, in order to "keep costs as low as possible," adding that the new supply will bring its energy cost even lower.

Chief Executive Officer Davinder Rai said: "Having evaluated the rapidly changing dynamics of the European medical cannabis markets and seen the challenges and issues that have confronted other cultivators, we are adapting our growth strategy to take advantage of opportunities which are emerging as a result of such changes.

"Our approach will now involve harnessing the scale, low operating cost and expertise at our growing facility to service the burgeoning demand from end use customers in our target markets."

By Sabrina Penty, Alliance News reporter

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