(Alliance News) - Hellenic Dynamics PLC on Wednesday said that it had secured the endorsement of "one of Greece's largest banks" for credit facilities.

Shares in Hellenic were up 16% at 4.25 pence each in London on Wednesday afternoon.

The cultivator and supplier of medical cannabis products, which owns a major production facility in northern Greece, said that Piraeus Bank SA has conducted a review of the company's five-year business plan.

The Athens-based financial services company has now issued a letter of intent for funding, outlining its support for the provision of credit facilities to Hellenic.

Its support is contingent on the submission of a detailed business plan for Hellenic by a consultancy firm "considered to be acceptable by Piraeus Bank". Hellenic said that it intends to submit this documentation to the unnamed firm "in due course".

The firm added that the credit facilities would provide export factoring for working capital, letters of guarantee for the advanced payment of Greek domestic grants for which Hellenic has already applied, alongside loans to support the expansion of Hellenic's 195,506 square metre production facility in Greece.

In December, the company received a European Union grant of EUR304,425 through the EU's Horizon Europe research funding project, and entered into a five-year joint research and production venture with Elgo-Dimitra, a public sector entity of the Greek Ministry of Agriculture, Development & Food.

Hellenic said it is now advancing cooperation with Piraeus regarding the funding opportunity, which will allow the company "to develop and grow its business for the long term benefit of shareholders".

Chief Executive Officer Dr Fillipos Papadopoulos said: "Piraeus Bank has been a steady supporter of Hellenic and a long term believer in the prospects of the company and the medical cannabis sector in Greece. The expertise of its team in the agricultural sector allows the bank to have a deep understanding of medical cannabis cultivation and processing, and thus facilitates an excellent working relationship."

By Hugh Cameron, Alliance News reporter

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