A somewhat bizarre story when you look at the directors, why they can’t manage to raise that amount seems a little odd considering their “experience” and backgrounds. In the end the lawyers will cost more than they currently owe
Business of Cannabis reports
Hellenic Dynamics is battling to stay afloat after receiving a ‘winding-up petition’ from one of its creditors, requiring it to pay its debts and accrued interest in full or face potential liquidation, and has seen its shares temporarily suspended from trading.
On August 01, the medical cannabis cultivator based in Northern Greece, announced that its legal advisors, Hill Dickinson, had filed the petition in court, with a hearing date scheduled for 28th August 2024.
The legal action related to an outstanding amount of £85,058.83. Interest on the debt has been accruing at a rate of £21.29 per day since the petition was filed on July 16, 2024.
A winding up petition is a serious legal action that can lead to a company being forced into liquidation. A creditor, who is owed at least £750 and believes the company is unable to pay its debts, can file this petition in court. The petition is then served on the company, giving it notice that the creditor seeks to liquidate the business.
Once the petition is served, the court sets a hearing date to determine if the company is insolvent. If the court finds the company unable to pay its debts, it may issue a winding up order, leading to the company’s compulsory liquidation.
Before the court hearing, the company has limited time to resolve the issue, either by paying off the debt, negotiating with the creditor, or disputing the claim in court. Failure to address the petition could result in the freezing of the company’s bank accounts and other severe restrictions on its operations.
Hellenic has said that, in order to pay its debts, it is relying on the receipt of a €1m loan announced in April, that it expects to receive in ‘mid-August’, just days before the scheduled court date.
The cultivator is reportedly in discussions with Hill Dickinson LLP and their solicitors, Wedlake Bell LLP, to resolve the matter and says it will keep the market informed of any developments.
