CS MEDICA A/S: Publication of interim report Q3

CS MEDICA (”CS MEDICA” or the ”Company”) hereby publishes its interim report for the period October 2021 – June 2022. The report is available as an attached document to this press release and on the Company's website (www.cs-medica.com). Below is a summary of the report.

Performance highlights third quarter (April 2022 – June 2022)
This year we have invested heavily in preparing our product portfolio for commercial success to reinforce proof-of-content. We were delayed due to COVID-19 with clinical trials, trademarks and our technology platforms CIM/PIM, which are now live. Additionally, the War in Ukraine has significantly impacted our sourcing and kickstarting of our revenue growth, especially in the European countries. Despite this, we have managed to speed up and get ahead with the commercial rollout in new markets and our three-year plan to generate growth and brand awareness is finally back on track. Since our Vitafoods Fair in May, our sales pipeline has accelerated with the new team and strategy, plus clinical trials finalized to support listings. With contracts signed or up for signature, we aim to match our 2021/2022 target. Further, additional 19 contract negotiations deliver a 26M DKK pipeline and a three-year forecast of 474M DKK. With our additional amounts of leads and more extensive negotiations with i.e., big pharma, we currently track the amount to DKK 650,5 million[1] up to 2025. This means that we no longer only focus on Europe as the go-to-market in the first commercial year but will now reach global distribution. With this broader market coverage, we will additionally be able to drive post-consumer tests and brand awareness faster than expected (year three).

• Operating profit in the third quarter amounted to tDKK -5.442 (tDKK 670)
• As of June 30, 2022, cash and cash equivalents in the Company amounted to tDKK 1.836 (tDKK 0).
• At the end of the period, CS MEDICA’s equity/asset ratio was 62% (-1%).
• We see a strong global market potential in our top 25 distributor negations where we estimate the potential sales pipeline to DKK 650,5 million[1] covering the period up to 2025.

Significant events during the third quarter (April 2022 – June 2022)

• April 6, 2022, CS MEDICA A/S announces that Heidi Ahlefeldt-Laurvig will take over as Chief Growth Officer (CGO) and Chief Marketing Officer (CMO) from May 1, 2022.
• April 11, 2022, CS MEDICA announces that the Company has now finalized the Parts-per-billion (PBB) level THC test on their CANNASEN® CBD products, showing no trace of THC. Hong Kong, Thailand and Japan are the countries that have legalized CBD products, and with the PPB THC test results, CS MEDICA is now able to sell CANNASEN® CBD products in these countries.
• April 13, 2022, CS MEDICA announces that the Company has completed one national and two PCT continuation patents, out of the 7 total patent applications covering 11 products.
• April 21, 2022, CS MEDICA announces that the Company has been approved by the Hong Kong customs and is now able to sell its CANNASEN® CBD products in Hong Kong. The Company has just received its first trial order from its sponsor/importer in Hong Kong.
• April 27, 2022, CS MEDICA announces that the CANNASEN® CBD products Pain Patch, Protective Nasal gel, and PSOR + ATOPIC lotion have been launched on Apopro’s Webshop and are now available for online sales. The Company also announces the launch of CANNASEN® CBD Protective Nasal gel has been launched in Matas, now available on shelves in 186 Medicare stores. Previous product availability in Matas includes the medical devices CANNASEN® CBD Arthritis Gel, Psoriasis Gel, Anti-Hair Loss Serum and Hand Cream.
• April 28, 2022, CS MEDICA announces that the Company has signed an agreement with the Asian distributor and Chinese-based CBF SciTech Ltd. The contract follows the test order announced on April the 21st and will ensure the first presence of the CANNASEN® CBD products in Asia, specifically Hong Kong. The agreement's value in minimum orders for the first three years amounts to DKK 134,4 million if the terms and conditions of the agreement are fulfilled.
• May 2, 2022, CS MEDICA announces that the Company is expanding its sales channels by launching products through Amazon Sweden. The products CANNASEN® CBD Pain Patch, Protective Nasal Gel and CBD PSOR+ATOPIC Lotion, Anti-Hair Loss Serum, and Hand Cream are now available on Amazon Sweden's webshop.
• May 2, 2022, CS MEDICA announces that due to delays from the COVID-19 lockdown, the Company's revenue goal for the coming three financial years has been revised. The revenue goal for 2021/2022 is reduced to DKK 12 million from DKK 50 million forecasted prior COVID-19 lockdown. The revenue goal for the following financial year, 2022/2023, will be adjusted to DKK 65 million from DKK 150 million previously. The revenue goal of DKK 150 million is sought to be accomplished in the financial year 2023/2024.
• May 10, 2022, CS MEDICA announces that the Company has signed a distributor agreement with Alsitan GmbH (“Alsitan”). The agreement regards the sales of CS MEDICA’s Arthritis gel under a private label in the German and Austria territory. The order amounts to 140,000 units and corresponds to an order value of DKK 4,4 million in revenue.
• May 20, 2022, CS MEDICA announces that the CFO Gitte Lund Henriksen has today acquired 26 841 shares in CS MEDICA at a price of 5,95, amounting to a total value of 160 012,94 DKK.
• May 31, 2022, CS MEDICA announces that the Company has secured loan financing of a total of approximately 6 M DKK from Bizcap AB, Gerhard Dal, and Råsunda Förvaltning AB. This financing will enable CS MEDICA to pursue additional collaboration negotiations and enter into more agreements with international customers, thus maintaining its momentum and scaling the business on international markets.
• June 3, 2022, CS MEDICA announces that the CFO of the Company, Gitte Lund Henriksen, has today acquired 10 159 shares in CS MEDICA at a price of 5,88, amounting to a total value of 59 824,52 DKK including commission.
• June 22, 2022, CS MEDICA A/S announces that the CEO of the Company, Lone Henriksen, has today acquired 6 328 shares in CS MEDICA at a price of 5,80, amounting to a total value of 36 702,4 DKK including commission.
• June 23, 2022, CS MEDICA announces that the final efficacy analysis in their clinical trial of CANNASEN® CBD Arthritis Gel (NGA-01) met all the trial’s primary efficacy endpoints. Analysis of the data indicates that CANNASEN® CBD Arthritis Gel (NGA-01) has efficacy in reducing pain in joints, swelling, stiffness, and pain during flexion of joints of participants with osteoarthritis with joint pain in the joints; knee, hip, ankle, elbow, and shoulder. The final objective analysis is based on 60 cases of osteoarthritis, as specified in the study protocol.
• June 28, 2022, CS MEDICA announces that the Company has signed a distributor agreement with Forbe Healthcare Ltd. The agreement covers the territory of Israel and Palestine and includes CS MEDICA’s entire portfolio of medical devices under the CANNASEN® CBD brand. The order, which concerns the portfolio of medical devices, amounts to 852,000 units, corresponding to DKK 37,1 million in revenue which will be distributed over 3.5 years if the terms and conditions are met. The terms include that the products will be introduced to the market if they are approved by local authorities.
• June 28, 2022, CS MEDICA announces that the Company has signed a distributor agreement with NaturaMedica. The agreement covers the territory of Slovenia and includes 4 of CS MEDICA’s medical device products under the CANNASEN® CBD brand. The order amounts to 20,700 units, corresponding to DKK 0,9 million in revenue which will be distributed over a 3.5-year period.

Significant events after the period

• July 7, 2022, CS MEDICA A/S (“CS MEDICA” or the “Company”) announces today that the CEO of the Company, Lone Henriksen, has acquired 35 190 shares in CS MEDICA through several transactions at an average price of 6,35, amounting to a total value of 223 400,48 DKK.
• July 12, 2022, CS MEDICA announces that, after conducting the final efficacy analysis in their clinical trial, their CANNASEN® CBD Arthritis Gel & CANNASEN® CBD ARTH Supplement (NGA-01 gel and NSA-01 capsule), met all the trial’s primary and secondary efficacy, tolerability & safety endpoints. The final analysis was based on 60 cases of osteoarthritis. The trial data showed that both NGA-01 and NSA-01 were well tolerated, no adverse event was reported, and no significant changes were observed in the urinalysis. The results strengthen our product offering and improve our competitive advantage in the Medical CBD product market.
• July 12, 2022, CS MEDICA A/S announces that the Company has expanded its presence on the Amazon sales platform and is now also distributed on the German Amazon site.
• July 14, 2022, CS MEDICA A/S announces that the CEO of the Company, Lone Henriksen, has acquired 10 470 shares in CS MEDICA through several transactions at an average price of 7,33 DKK, amounting to a total value of 76 779,76 DKK.
• August 5, 2022, CS MEDICA A/S announces that CEO Lone Henriksen as well as CFO Gitte Lund Henriksen have extended their lock-up agreements for their shares in the Company until August

For more information about CS MEDICA, please contact:
Lone Henriksen, CEO
Phone: + (45) 71 20 30 47
Email: lh@galaxapharma.com
Website: https://www.cs-medica.com/

CS MEDICA A/S is a Danish medico cannabis company founded in 2011. CS MEDICA is committed to developing, manufacturing, and commercializing over-the-counter (OTC) medical device products containing cannabinoids. The Company runs its business through the two fully-owned subsidiaries, Galaxa Pharma A/S (distributor and representative of foreign manufacturers in the Nordic, registered medical device product distributor) and CanNordic A/S (Medical device developer and seller (BtB), registered medical device product manufacturer). CS MEDICA distributes products across the European borders and is headquartered in Copenhagen, Denmark.

The company is listed on Spotlight Stock Market in Stockholm (symbol: “CSMED”). For more information about CS MEDICA cs-medica.com.