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UK SPAC PLC announced on Tuesday its proposed reverse takeover of European medical cannabis cultivation company Hellenic Dynamics has been approved by the Financial Conduct Authority.
The proposed acquisition by the London-based special purpose acquisition group entails the purchase of 10.4 billion of ordinary shares at a price of 0.3 pence each.
This price was determined after it was agreed Hellenic Dynamic's market valuation had fallen to around £31.2 million. It was initially valued at £45.2 million on August 2, when the initial terms of the transaction were announced.
UK SPAC is set to change its name to Hellenic Dynamics, with executives at Hellenic set to take charge.
It has also proposed a subscription of 250 million new ordinary shares at 0.3 pence each to raise £750,000.
A further £375,000 is planned to be raised through the issue of unsecured convertible loan notes, which can be converted at a price of 0.3 pence each.
UK SPAC said it expects to raise £1.1 million from both the subscription and issue of loan notes, as part of its readmission to the London Stock Exchange.
"With the announcement today of the first successful UK listing of a medical cannabis grower, all our efforts have been rewarded," said Peter Jay, UK SPAC chair.
Hellenic Dynamics Chief Executive Officer Davinder Rai said he looked forward to transitioning into a public company.
Kanabo Group PLC said on Tuesday it was delighted the FCA approved UK SPAC's proposal, after acquiring an interest of £750,000 worth of shares in Hellenic Dynamics on May 24.
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