Ohrid Organics - Update

Hydrogen Utopia International PLC

15 April 2024

 

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  

[phone]     

Alfred Henry Corporate Finance Limited (LSE Corporate Adviser)

Nick Michaels/Maya Klein Wassink                                                                         

[phone]

Novum Securities Limited (Broker)                                                                    

Jon Belliss/Colin Rowbury                                           

[phone]

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.

 

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