The subscription period in CS MEDICA A/S’s issue of units starts today
Today, August 17th, 2021, is the first day of the subscription period in CS MEDICA A/S’s (”CS MEDICA” or the ”Company”) issue of units prior to the planned listing on Spotlight Stock Market. The subscription period lasts until August 31st, 2021. A fully subscribed issue of units will initially provide CS MEDICA with approx. DKK 22.3 million and an additional approx. DKK 10.8 million at a later stage if all warrants of series TO 1 are exercised. Prior to the issue of units, CS MEDICA has received subscription commitments corresponding to approx. 60 percent of the initial issue volume. The prospectus and teaser of the Company and the offer are available on CS MEDICA’s (www.cs-medica.com), Sedermera Fondkommission’s (www.sedermera.se), Nordic Issuing’s (www.nordic-issuing.se) and Spotlight Stock Market’s (www.spotlightstockmarket.com) respective websites. Sedermera Fondkommission is the financial advisor and Markets & Corporate Law Nordic AB is the legal advisor in connection with the issue of units. Nordic Issuing is the issuing agent and Nordnet Bank AB is acting as Selling Agent.
Motive for capitalization and listing
CS MEDICA was founded in 2011 and is committed to developing, manufacturing, and commercializing over-the-counter (OTC) medical device products containing cannabinoids. Currently, the company focuses on the usage of cannabidiol in psoriasis and arthritis treatment. CS MEDICA has an excellent competitive advantage in a fast-growing industry, having classified medical device treatment products containing cannabinoids with optimal bioavailability, and low medical interaction – all with patents pending, available on the market. New products introduced to the market under Medical Device Regulation (MDR) with cannabinoids must undergo the process applicable to MDR class IIa, corresponding to an application process period of two to three years. CS MEDICA will thus have a competitive advantage during this period. In the future, the Company also foresees great possibilities in systemic treatments, combining gels/serum and complementing it with food supplements to enhance the efficacy of the treatment.
Until now the focus of CS MEDICA has been on expanding its operations within the Nordic countries. With a growing demand for products containing cannabinoids, CS MEDICA is preparing to scale its business with the ambition to continue organizational and product development, enter new strategic partnerships, and launch products on the larger European market. CS MEDICA is in the process of entering markets across the nations of Europe, with several signed distribution agreements in the United Kingdom, Netherlands, Belgium, Sweden and Denmark (as well as further negotiations with eight other countries).
The Company’s product portfolio consists of two product lines – The CANNASEN® CBD Treatment line and the CANNASEN® CBD Restoring and Calm line. The Treatment line is currently available on the market in more than 200 stores in the EU (with another 326 outlets expected in October 2021). The CANNASEN® CBD Skincare Restoring and Calm line is expected to be introduced to the European market in 2022.
The Board of Directors considers the IPO to be a logical step to support continued growth and strengthen CS MEDICA’s brand by providing a diversified base of shareholders and increased visibility towards potential partners and customers. Prior to planned listing in September 2021, the Company will carry out an issue of units of a total of DKK 31.1 million to maintain the high pace of launching products, expand the scope of operations, and thus gain valuable market shares.
All information about the capitalization, such as the prospectus, the teaser, and information on how to subscribe, is found on the Company’s (www.cs-medica.com), Sedermera Fondkommission’s (www.sedermera.se) and Nordic Issuing’s (www.nordic-issuing.se) respective websites.
Summary of the offer: Existing shareholders, the public, and professional investors in Sweden and Denmark are hereby invited to subscribe for units in CS MEDICA.
Subscription period: August 17th – 31st, 2021.
Subscription price: DKK 38.50 per unit, corresponding to DKK 7.70 per share. Each unit consists of five (5) shares and two (2) warrants of series TO 1.
Minimum subscription: 120 units, which corresponds to DKK 4,620, and thereon after subscription may be made in any number of units. Brokerage fee may occur.
Issue volume: Initially approx. DKK 22.3 million (before issue costs of approx. DKK 1.8 million), of which approx. DKK 3.9 million pertains to bridge loan financing, and approx. DKK 0.8 million is attributable to compensation (in the form of units) to bridge financiers and will thus not be provided to the Company. Furthermore, a previously obtained bridge loan (with no interest) of approx. DKK 2.8 million is to be redeemed against units in this offer. The Company can be provided with additionally approx. DKK 10.8 million before issue costs, upon full exercise of warrants of series TO 1 in August-September 2022.
Valuation (pre-money): Approx. DKK 61.6 million.
Subscription commitments: The Company has received subscription commitments of approx. DKK 13.4 million, corresponding to approx. 60 percent of the initial part of the issue of units. This means that approx. 40 percent of the issue volume is available for subscription by shareholders and other investors.
Lock up: All (two) shareholders in the Company, together holding 8,000,000 shares (corresponding to 100 percent of the shares prior to the listing of the Company) have entered into lock-up agreements. The lock-up agreements state that no selling of any shares or warrants until the exercise of the warrant series TO 1, which is scheduled to take place approx. twelve (12) months after listing on Spotlight Stock Market, is allowed.
Number of shares before the issue of units: 8,000,000.
Expected first day of trading on Spotlight Stock Market: September 14th, 2021.
Ticker and ISIN: CSMED and DK0061668225.
Summary of the consideration free warrants
Exercise period: August 18th - September 1st, 2022.
Exercise price: One (1) warrant gives the right to subscribe for one (1) new share at DKK 9.30 during the subscription period for the warrants.
Issue volume: If all warrants are exercised, the Company will receive an additional of approx. DKK 10.8 million before deduction of transaction-related costs.
Ticker and ISIN: CSMED TO 1 and DK0061668308.
Biostock interview
The Company’s CEO, Lone Henriksen, speaks to Biostock about the Company, its acceleration plans, and the ongoing offer. Listen here: https://www.youtube.com/watch?v=gBMPIf7BmnU
Company presentation
For more information, watch the Company’s presentation here: https://youtu.be/3rA9Dl-jIak
Advisors, selling agent, and issuing agency
Sedermera Fondkommission is the financial advisor and Markets & Corporate Law Nordic is the legal advisor to CS MEDICA in connection with the planned capitalization and listing. Nordic Issuing acts as issuing agency and Nordnet Bank AB is the selling agent.
Selling Agent
Nordnet Bank AB is the Selling Agent in the issue of units.
This disclosure contains information that CS MEDICA A/S is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 17-08-2021 08:00 CET.
For more information about the offer, please contact:
Sedermera Fondkommission
Phone: +46 (0) 40 615 14 10
Email: info@sedermera.se
Website: www.sedermera.se
For more information about CS MEDICA, please contact:
Lone Henriksen, CEO
Phone: + (45) 70 70 37 73
Direct: + (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.
Tags: