CS MEDICA presents CEO Letter of October 2022
CS MEDICA A/S (” CS MEDICA” or the” Company”) hereby provides the monthly CEO letter for October to keep their shareholders and other interested parties updated about expected objectives and activities for the forthcoming month.
October was another month for CS MEDICA A/S with growth and strategic deliverables. The Company announced closing the year with a revenue of 10,6M DKK, an increase of 331% versus last year.
Reflections on 2021/2022 & Future considerations:
CS MEDICA partnered with three new strong partners, each matching our different go-to-market strategies.
- Alliance Healthcare Romania, part of Alliance Healthcare, one of the largest wholesalers in Europe, will market our Cannasen® brand and the entire portfolio.
- Aldo-Union, an innovative pharmaceutical laboratory, will bring our unique formulas and products in their own brand to patients in Spain.
- Pluripharm, one of the four major wholesalers in the Dutch market with an understanding of the pharmaceutical marketplace, will help distribute our Cannasen® products to our European markets incl. Amazon.
“The process for teaming up with new partners takes 6+ months, depending on the region and the legislation window. And with the product lead time increasing due to resource challenges, we acknowledge we must build a larger pipeline on both sales and stock. Hence, we see an opportunity to accelerate our rollout, testing different channels and marketing initiatives by partnering with Pluripharm.” Lone Henriksen, CEO CS MEDICA states.
The remaining approx. 1,4M DKK to reach the target of 12M DKK is to be covered by two new distribution partners, who have the final registration details pending in their markets.
Status on Letter Of Intent (LoI) with Chinese continental partners:
- Inner Mongolia Rong Shi Hi-Tech Co., Ltd (“Rong Shi”); Both Parties evaluate the possibilities for setting up a joint venture (“Joint Venture”) in Erdos city, Inner Mongolia, China. The joint venture will be a production company facilitating the production and delivery of the CANNASEN® product line to the Asian market. The project is in the due diligence phase and on track with the process.
- Heilongjiang FuYu ShengKun Textile Industry Co.; The process is in the latter part of the due diligence phase.
- Both companies know of each other’s LoI and different strategies for the Asian market.
Rong Shi states: “We chose to contact CS MEDICA as we see great advantages in being a First-Mover into the Asian market and the natural synergies between their medical technology platform and our production capacity and distribution network. We have recently noticed that the market in Asia has matured and is now ready for CBD-products, and we are at the end of our Due Diligence and looking forward to taking further steps ahead. Our ambition is to be a strong long-term partner.”
Lone Henriksen, CS MEDICA adds: “I really look forward to discussing the process and joint venture further with Rong Shi when they visit us later the year.”
Visibility and recognition:
CS MEDICA attended Vitafoods Asia in Bangkok, Thailand, on October 5-7 to build a larger pipeline of potential sales partners. The event brought together more than 600+ international companies and 21,000+ business leaders, industry experts, and stakeholders to exchange experiences and empower the business community by building new partnerships.
“As medical product CBD experts, we constantly improve in every possible direction. Therefore, we had booked meetings at Vitafoods Asia with potential partners to present what we can offer in terms of first mover advantage of CBD medical products and how to move regulatory correct into Asia,” noted Lone Henriksen, CEO at CS MEDICA.
Another exciting October event for CS MEDICA was the nomination as a finalist for ‘Medtech Company of the Year’ at the European Lifestars Awards by @LSXLeaders, with the Award Ceremony on November 14 in London.
In addition, CS MEDICA was selected and invited to speak at the following events:
- TechTour Bioeconomy 2022 in Wuppertal, Germany. An event for 30+ game-changers, the best entrepreneurs, most active investors, corporations, and governmental experts in the Bioeconomy.
- Odense Investor Summit – Cannabis & Life Science. An annual event dedicated to capital-seeking startup companies and SMEs within life science and the growing field of pharma-biotech companies related to medical cannabis.
Resignation of board member Bo Unéus
The request of Bo Unéus to resign as a board member was an expected action. CS MEDICA is looking for a new Strategic Financial Partner to guide the Company optimally in our journey as a medtech company; still in a growth phase hence ensuring we have the proper equity story and position in the right markets. Bo Unéus was appointed board member due to our previous advisor relationship with Sedermera.
I hope you enjoyed our CEO letter. We look forward to keeping you updated with our Company’s industry and field of business in future CEO letters.
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.