Strategic Realignment to Secure Funding, Optimize Shareholder Value, and Capitalize on Market Position in Alternative Medicine with CBD

CS MEDICA A/S (“CS MEDICA” or “the Company”) is implementing comprehensive changes in its board and management team to strategically navigate current challenges and position the Company for future growth. These changes will be proposed for approval at the upcoming Annual General Meeting (AGM) on February 28, 2025, and have already been approved by approximately 66% of the votes.
Background and Strategic Rationale

On January 9, 2025, CS MEDICA was delisted. While this transition presented challenges, it has also unlocked strategic opportunities. The Company’s value remains intact, and new investors view relisting as an attractive exit, recognizing CS MEDICA’s unique position within alternative over-the-counter (OTC) treatment, offering highly regulated medical devices, infused with CBD from the cannabis plant.

Although the long-awaited investment agreement with RongShi has been reactivated, restrictions on the second tranche necessitate additional short-term funding. Combined with not meeting the sales goals for 2023/2024, these circumstances have prompted a strategic reassessment of the Company’s focus and management structure.

To ensure sustainable growth, optimize funding solutions, and strengthen its competitive advantage, CS MEDICA recognizes the need for decisive and transformative changes.
Proposed Changes to the Board

To streamline governance, strengthen leadership, and enhance strategic focus, it is proposed to reduce the board to three members at the upcoming Annual General Meeting (AGM):

• Torben Jørgensen, proposed as a board member, brings a wealth of experience in business development and operational management. With deep industry knowledge and a background in strategic execution, Torben Jørgensen will play a crucial role in driving operational efficiency and accelerating growth initiatives.
• Mads Jørgensen, proposed as board member, brings extensive experience in financial management, strategic leadership, and corporate governance. As a recognized leader with a proven track record in driving growth and navigating complex market conditions, Mads Jørgensen’s expertise will be pivotal in guiding CS MEDICA through its current challenges and positioning the Company for future success.
• Gitte Lund Henriksen, proposed as continued board member, representing the founders and major shareholders.

Current board members Flemming Heegaard, Anders Permin, Ib Madsen and Jesper Halle have been suggested to step down as board members, pending approval at the AGM. This strategic change aims to streamline decision-making processes and enhance strategic direction for the Company’s next growth phase.
Change in CEO Position

CS MEDICA’s CEO and Co-Founder, Lone Henriksen, has been diagnosed with breast cancer and will begin chemotherapy this week. Due to her medical treatment, she will temporarily step down from her executive position. Lone will contribute as CSO (Chief Science Officer), offering support from her vast experience during her recovery.

During Lone’s absence, leadership responsibilities will transition to Heidi Ahlefeldt-Laurvig and Gitte Lund Henriksen, who will act as co-CEOs:

• Heidi Ahlefeldt-Laurvig, CCO & CMO of CS MEDICA, who will oversee overall operations and strategies with a focus on driving growth and achieving sales revenue targets.
• Gitte Lund Henriksen, CFO & Co-Founder of CS MEDICA, will guide strategic initiatives while managing financing, administration and accounting, ensuring financial stability and effective funding solutions.

This interim leadership arrangement ensures stability and continuity while maintaining core focus and operational momentum.
Strategic Focus and Future Direction

The strategic focus for CS MEDICA centers on:

• Optimizing funding solutions to secure the Company’s growth trajectory and address liquidity challenges.
• Achieving sales revenue targets to drive sustainable growth and reinforce market leadership.
• Evaluating CS MEDICA’s new position as a delisted company and identifying the best pathways forward for shareholders.
• Capitalizing on CS MEDICA’s strategic position as a first mover within the MedTech industry, providing innovative treatment solutions within alternative medicine as OTC substance medical devices infused with CBD from the cannabis plant.

The new leadership team is actively developing a strategic plan to capitalize on these opportunities, holding daily meetings to address the current and future situation of CS MEDICA. Updates on the future strategy will follow shortly.
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/
About CS MEDICA A/S
Founded in 2011, CS MEDICA is a Danish MedTech company specializing in CBD-infused treatments for autoimmune and stress-related conditions, including arthritis, psoriasis, and pain management. Operating at the intersection of the pharmaceutical and cosmetics industries, CS MEDICA delivers clinically supported products with fewer side effects, offering competitive and accessible alternatives. With MDR-approved products, cutting-edge R&D, and the benefits of CBD, the company provides innovative, safe, and effective solutions. Its capital-light business model and trusted European production partners further enhance its ability to offer high-quality treatments, setting CS MEDICA apart in the MedTech sector.