CS MEDICA Explores Listing and Strategic Options to Protect Shareholder & Company Value
After the Spotlight Announcement: CS MEDICA Prioritizes Shareholder Assets and Will Call for Extraordinary General Meeting Starting January 2025
CS MEDICA A/S (“CS MEDICA”) announces its Board of Directors is already in discussions with new trading venue platforms and exploring other solutions to protect company value and shareholder assets. The priority is to protect the company’s growth journey and ensure continued trading by either relisting, moving to a new trade venue, or converting assets through i.e. CANNORDIC.
“Our primary goal is to safeguard shareholder assets while maintaining the company’s value and strategic direction,” stated Flemming Heegaard, Chairperson of CS MEDICA. “We are committed to implementing measures that support a transition and align with our long-term plans. Updates will be shared once decisions are finalized and ready to be voted/ approved on a forthcoming EGM.”
CS MEDICA will call for an Extraordinary General Meeting start January 2025 to ensure shareholders are informed about the options to protect their investments.
Strategic Actions and Strengthened Position 2024
Although Spotlight is considered a growth exchange market, CS MEDICA has faced challenges with its share due to a low free float, as the majority of shares are held by founders and family members, coupled with the financial constraints typical of a scale-up MedTech company. To address these challenges, the company has focused on increasing the number of shares to improve trading volume and liquidity while simultaneously building organic sales growth.
Besides these challenges, CS MEDICA's business operation has taken several steps to stabilize the business and support growth, reflected in the share development and market cap prior to Spotlights notification on the 19. December 2024:
- Increased Revenue: Achieving growth through product milestones and expanding partnerships in the last year.
- Reduced Burn Rate: Implementing cost-saving measures to enhance sustainability.
- Converted Founders’ Debt to Shares: Improving the company’s financial baseline.
- Mitigated Risks: Addressing challenges proactively and changed strategy to improve operations.
- Advanced Spin-off of CANNORDIC: Progressing with the planned share spin-off to secure additional funds for growth on the most mature market for the company's portfolio.
While the financial situation remains challenging, as other growth companies on Spotlight, these actions have improved CS MEDICA’s business outlook compared to last year.
For more information about CS MEDICA, please contact:
Gitte Lund Henriksen, CFO
Phone: + (45) 2774 2280
Email: glh@cs-medica.com
Website: https://www.cs-medica.com/
CS MEDICA A/S, a Danish MedTech pioneer, specializes in developing evidence-based, CBD-integrated treatments for pain management, autoimmune and stress-related disorders. With a focus on patient-centric care, our products range from innovative R&D to registered over-the-counter substance-based medical devices and dermaceuticals. Our flagship CANNASEN® brand, alongside our own-label solutions, exemplifies our dedication to safe, high-quality treatments for both human and veterinary health globally. The company is currently listed on Spotlight Stock Market in Stockholm (symbol: “CSMED”). For more information, visit cs-medica.com and LinkedIn.
CANNORDIC A/S, a subsidiary of CS MEDICA Group, is a pioneering MedTech company specializing in innovative substance-based medical devices containing bioactive CBD. Our dedication to enhancing lives by integrating innovation, science, technology, and natural cannabis compounds positions it as a pioneer in the medical technology industry. The company ensures robust research, development, manufacturing, compliance, data insights, and commercialization processes.