CS MEDICA has signed a distributor agreement with Chinese based CBF SciTech Ltd
CS MEDICA (”CS MEDICA” or the ”Company”) announces today 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 products in Asia, more specifically Hong Kong. The agreement’s value in minimum orders for the first three years amounts to DKK 134,4 million if terms and conditions of the agreement is fulfilled.
Lone Henriksen, CEO of CS MEDICA, pronounces:
“We are very proud of finally breaking ground in a bigger scale. With our agreement with, Chinese based CBF SciTech Ltd, we now lift our business to a new level. We are now beginning to reap the reward of all our efforts, and I strongly believe that this is only the beginning.”
CS MEDICA reveals today that the Company’s fully owned subsidiary CanNordic a/s has signed an agreement with Chinese based CBF SciTech Ltd., who will ensure the first presence of the CANNASEN product line in Asia, starting with Hong Kong. With this agreement, CS MEDICA are now breaking ground outside of Europe.
The agreement is focusing on trial orders to be launched in possibly four markets with cannabis products being legalized, including Hong Kong, Thailand, South Korea, and Japan. The primary order in Hong Kong will be initiated soon with the first trial order at hand. Japan will follow with samples being shipped in the month of May, for partners of CBF to evaluate and plan ahead. Thailand and South Korea are included in the contract with a similar setup as Japan, with trial orders during 2022 and full-scale launches in 2023. The contract obligation on the purchasing side in 2023 are DKK 19,1 million and ensure the real entry of the CANNASEN brand in the Asian marketplace, by the latest, early 2023.
The minimum order sizes of the contract cover the coming 3 years trade include the areas of Hong Kong, Japan, South Korea and Thailand, with a total order value of DKK 134,4 million if the supplier’s terms and conditions of sales are met. The terms include that the sales plan will be completed and not disturbed by natural disasters, epidemic situations or changes in government policies, in which case CS MEDICA and CBF shall renegotiate a new distribution plan. A breakdown of the annual order value is disclosed below.
2023, DKK 19,1 million
2024, DKK 38,6 million
2025; DKK 76,7 million
CBF are partnering up with major pharmacy chains in various markets and ready for expansion into other Asian territories when legal framework is in place, including the biggest opportunities of all, China.
CBF and CanNordic will partner up on succeeding in launching the trial period, by harvesting the internal knowledge at hand in both companies. In order to be time-efficient and environmentally aware, the POS material will be supported from the Copenhagen office of CanNordic, while printed at site in Hong Kong.
The test order previously announced, covering the full CANNASEN product line, in total 3 300 products, will be shipped to Hong Kong within the first week of May.
- Cannasen®CBD Arthritis Gel
- Cannasen®CBD Psoriasis Gel
- Cannasen®CBD Anti-Hair loss serum
- Cannasen®CBD Pain Patch
- Cannasen®CBD Protective Nasal Gel
- Cannasen®CBD PSOR + ATOPIC Lotion
- Cannasen®CBD Wound Gel
When the sample products are received in Hong Kong, they are free to sell and can enter the Hong Kong market without any further registrations. Part of these samples are redistributed to Thailand, South Korea, and Japan. In these countries the legal Framework is in place, but the registration of the products can only be finalised at the time of receipt of the sample products.
The agreement has an initial term (the “Initial Term”) of 6 months following the date of the signing of the agreement. Upon expiration of the Initial Term and each Renewal Term thereafter, the agreement will be automatically renewed for an additional one (1) year term (the “Renewal Term”) unless terminated by either party with two (2) calendar months written notice.
This disclosure contains information that CS MEDICA A/S is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 28-04-2022 19:25 CET.
For more information about CS MEDICA, please contact:
Lone Henriksen, CEO
Phone: + (45) 71 20 30 47
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.