LONDON — In a reverse takeover deal, the Greek medical marijuana company Hellenic Dynamics will be listed on the London Stock Exchange as the sector seeks to expand in Greece and attract more businesses.

Yahoo Finance said that it's being done through UK SPAC Plc, a London-listed shell company, which wants to take the company public in a deal estimated at some $62.5 million.

The transaction combines two of the hottest trends in public markets over the last few years: SPACs and cannabis, both luring investor attention and Greece wanting to pick up the medical marijuana business.

Hellenic Dynamics, founded in 2019, is currently building a 200,000 square meter (2,152,782 square foot) cannabis cultivation factory in Northern Greece and hopes to start selling medical grade cannabis oils and flowers in 2022 and has signed two term sheets for distribution deals, the report added.

"This is a major step forward for Hellenic as we look to establish ourselves as a leading cultivator of THC dominant medical cannabis in Europe and develop specialist strains of cannabis specific to individual medical ailments," Hellenic's Vice-President Davinder Rai told the site.

Europe's cannabis market is worth around $3.47 billion but could explode into 10 times worth that over the next five years because of deregulation opening the doors and floodgates.

"With patient demand for medical cannabis increasing and a willingness among governments to regulate and open up this important market we are very optimistic about our future as a listed company," Rai said.

UK SPAC Chairman Peter Jay said: "I am delighted that the company has been able to contract to acquire this extremely exciting and impressive company which has the ambition and the potential to become one of the major growers of medicinal cannabis in Europe."

Hellenic Dynamics said in May it wanted to be listed on the London Stock Exchange with a planned initial public offer that was then set for June.

The site Proactive said the company was seeking a valuation equivalent to $70.86 million, citing its partnership with the respected American Farm School in Greece which centers on agricultural genetics research.

“London is going to be the place that a number of cannabis companies will end up listing, and you’d be in very good company if you listed in London,”Rai told CityAM at the time.

In January, the New Democracy government said hoped that a growing cultivation of medical marijuana would help get the economy going after after being driven down hard by the COVID-19 pandemic.

A proposal then presented by Development and Investments Minister Adonis Georgiadis showed the cannabis would not be subject to the same laws as that sold domestically, which must follow the existing legislation calling for approval by the Hellenic Organization of Pharmaceuticals, said Kathimerini.

Exported products will be solely subject to the laws in the country importing them, the scheme at boosting production and exports, especially in view of increased interest by investors, the report also added.