Hydrogen Utopia International
PLC
(the "Company"
or "HUI")
Ohrid Organics -
Update
Hydrogen Utopia International PLC, a company
specialising in converting non-recyclable mixed waste plastic into
hydrogen and other carbon-free fuels, new materials or distributed
renewable heat, is pleased to share an update on the
significant progress and achievements made at Ohrid Organics DOO
(formerly known as King Fild DOO) ("Ohrid Organics North
Macedonia"), the wholly owned subsidiary of Ohrid Organics Ltd
("Ohrid Organics UK"). The update is an extract from the Ohrid
Organics Management Report, a copy of which has been provided to
HUI.
HUI exercised its option to acquire 49% of Ohrid
Organics UK on 29 December 2023. Ohrid Organics UK remains of great
importance in HUI's journey towards establishing a groundbreaking
plastic-to-hydrogen facility. North Macedonia could be the location
of HUI's first waste plastic to hydrogen facility with Ohrid
Organics UK providing the financing for the roll out. Ohrid
Organics North Macedonia is currently awaiting the issuance of its
first Certificate of Analysis, test results on a batch of dried
flowers confirming, among others, certain potency and purity
requirements, a pre-requisite for sales and exports.
Extract - Ohrid
Organics Management Report - Progress and Achievements
Operational
Highlights
We are pleased to share significant progress and
achievements made at Ohrid Organics D.O.O., formerly King Fild
D.O.O., as we continue our journey towards becoming a leading
cannabis cultivation facility in the European, Australian and
Israeli market.
Successful
Harvests
Our facility has completed the harvesting of its
first two commercial crops, resulting in a total of approximately
300 kgs of dried flower awaiting final testing results from the
government facility of Cyril and Methodius in Skopje. This is
the only laboratory in North Macedonia that is certified to provide
us with data for the CoA ( Certification of Analysis) which
enables us to finalise our sales and export our product. In
anticipation of the official, governmental CoA's we
have conducted internal testing using Purpl Pro, a highly
advanced testing device that measures cannabis potency with
instant results and our results were higher than anticipated
ranging between 21- 25 % THC in a range of various
samples.
Facility Upgrades
We are delighted to announce the successful
completion of various facility upgrades, including the
installation of a new drying facility, state-of-the-art lighting in
the rebuilt clone room and greenhouse, a new fertigation system in
all grow houses, and the installation of water recycling tops
throughout the facility. New drying room installation system
will allow us to process almost 5 times the capacity previously
available while still preserving the integrity of the flower and
medicinal values within. It also allows us to perfectly dry each
batch completely homogeneously, ensuring high product quality. The
new LED lighting ensures higher yields and stronger potency. The
higher intensity of the new lights alongside the sun will
essentially raise potency, terpenes, aromatics and even taste. New
lighting in the clone room ensures cutting down rooting time
by 50% and supplying healthy and vigorous starting material for
production. Additionally, 80KwH of solar panels have been installed
to enhance sustainability efforts and significantly reduce
production costs by 30 %. We are planning to build a solar park in
order to maximise our efforts in sustainability.
Expansion
Projects
Construction of Greenhouses 5 and 6 is underway, with
operations expected to commence in Q3. This expansion will
significantly increase our harvest frequency, with new harvests
anticipated every two weeks.
Strain
Development
We have seven new strains currently undergoing
phenotyping and scheduled for commercial growing in Q3, catering to
various market demands. Five of these strains are high THC while
two are balanced strains where once a compound ratio of 1:1 is
achieved (i.e. 10 % THC, 10 % CBD). Phenotyping cannabis
plants is the process of observing and analysing their physical
characteristics, such as leaf shape, color, bud structure, and
aroma, to determine their genetic makeup, cannabinoid profile, and
potential effects. This is crucial for growers and breeders to
select plants with desired traits, such as high THC or CBD content,
specific flavours, or resistance to pests and diseases. By
identifying and categorising these traits, we can optimise their
cultivation practices and develop new strains tailored to meet
consumer preferences or medical needs. Phenotyping helps to
ensure consistency and quality in cannabis
production, leading to better products for consumers and more
efficient cultivation processes for the producers.
Regulatory
Compliance
Our facility has undergone a third-party site review
conducted by Cannaflos, a German GMP Audit agency who are experts
in their field and will be our sponsors to obtain German GMP for
Ohrid Organics North Macedonia. Their approval is marking a crucial
step towards EU GMP certification which will enable us to sell our
product at higher prices. We are now preparing for a pre-audit,
expected to take place in May, which will pave the way for an
official EU GMP inspection and certification during H2 2024.
Sales and
Export
With imminent CoA certification on our first two
crops, we are on the verge of commencing sales and export
processes. Pre-sales efforts have been extensive, with several
visits from potential end purchasers.
Quality Assurance
Over the past six months, our team has demonstrated
extraordinary effort and dedication, resulting in the establishment
of a low-cost, high-quality product. Our commitment to quality
assurance is reflected in the exceptional results from state
laboratory R&D testing, indicating minimal microbial presence
thereby removing any need for irradiation. Lack of irradiation,
which is very difficult to achieve, makes it a very interesting
proposition to all the patients seeking an organic product.
Future
Outlook
With just 10% of our licensed capacity currently
utilised, we are well-prepared to cater to the expanding European
medicinal cannabis market and beyond. Our focus on delivering a
high-quality, low-cost product with a minimal carbon footprint
positions us favourably in the growing market landscape.
Aleksandra Binkowska, CEO of HUI,
commented: "Whilst we are considering
other opportunities, Ohrid Organics UK remains a very attractive
option. Ohrid Organics North Macedonia could be a great partner on
our path of achieving our goal, namely the building of the first
waste plastic to hydrogen facility. I have personally met with
potential buyers and they were all very impressed with Ohrid
Organics North Macedonia's product."
For further information, please
contact:
Hydrogen Utopia International PLC
Aleksandra
Binkowska
+44 20 3811
8770
Alfred Henry Corporate Finance Limited (LSE Corporate
Adviser)
Nick Michaels/Maya Klein
Wassink
+44 20 3772
0021
Novum Securities Limited (Broker)
Jon Belliss/Colin
Rowbury
+44 20 7399 9400
About Hydrogen Utopia International PLC
HUI aims to become one of the
leading new European companies specialising in converting
non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels,
new materials or distributed renewable heat.
A HUI facility uses non-recyclable
mixed waste plastic as feedstock and turns it into syngas from
which new products and energy can be produced. HUI anticipates that
its revenues will be derived from a variety of sources, dependent
upon location and configuration of the HUI facilities, including
the sale of syngas, hydrogen and other gases, electricity and heat
sales, and the payment to it of fees for a given quantity of
non-recyclable mixed waste plastic received at a HUI
facility.
HUI will target areas where there is
significant private sector interest or potential, financial backing
is accessible and or where substantial EU and/or government funded
sources of grants and loans are or may be available. The global
increase in fossil fuel-based energy prices reinforces the need for
alternative, price competitive energy sources, which
HUI's business
model can provide.
