Publication of half-year report for the financial year 2021/2022
CS MEDICA (”CS MEDICA” or the ”Company”) hereby publishes its half-year report for the period October 2021 – March 2022. The report is available as an attached document to this press release and on the Company’s website (www.cs-medica.com). Below is a summary of the report.
Performance highlights second quarter (January 2022 – March 2022)
The circumstances following COVID19, and the current War in Ukraine have had and still has a great impact on our sales revenue, especially in the European Countries. Both incidents have negatively affected not only sales but also reduced the speed and ability to create results in research and development, delaying both clinical trials and our manufacturing processes. Despite this we have now finalised a substantial Distributor agreement, covering a great part of our revenue goal for the upcoming years. Looking to the future we have high expectations for our ongoing negotiations with several global potential distributors which are expected to be activated within the coming months.
- In line with our previous expectations, our second quarter revenue, tDKK 94, is lower than the corresponding quarter in 2020/2021, tDKK 149. Our year-to-date revenue was in 2020/2021 generated through in-sale to the shelf of Matas 186 medicare shops.
- Operating profit in the first quarter, consequently decreased to tDKK -4.857 compared to 2020/2021 (tDKK -351)
- As of March 31, 2021, cash and cash equivalents in the Company amounted to 1.848 tDKK (-306 DKK).
- At the end of the period, CS MEDICA’s equity/asset ratio was 81% (-8%).
- Our prospective sales pipeline is currently amounting to DKK 204,5 million, but due to extended negotiations, the majority of the sales pipeline will be realised in the following financial year.
Significant events during the second quarter (January 2022 – March 2022)
- January 6, 2022, CS MEDICA A/S recruited 4 new employees to strengthen the sales department.
- January 26, 2022, CS MEDICA A/S: Chairman of the Board bought shares in CS MEDICA.
- February 3, 2022, CS MEDICA A/S held an extraordinary general meeting (“EGM”). The EGM resolved in accordance with the Board of Directors’ proposal to approve the issue of up to 798,000 incentive/bonus warrants to newly hired sales employees, the issue of up to 600,000 incentive warrants to Diaz Capital Invest AB or companies/persons related to Diaz Capital Invest AB and the proposal to make a cash capital increase to be subscribed by Diaz (direct issue) of 100,000 shares at a price of DKK 8.50 per share.
- February 3, 2022, CS MEDICA A/S signed a partnership with Ampilio AB, a subsidiary of SpectrumOne. Amplio will assist CS MEDICA as a business strategist, growth specialist as CS MEDICA prepares to execute global expansion on Amazon. The partnership is a running agreement with a fixed annual fee of 270 000 SEK.
- February 17, 2022, CS MEDICA A/S announced that their CANNANSEN®CBD Anti-Hair Loss serum has been successfully approved in the United Arab Emirates and enables CS MEDICA to market and sell the product in the United Arab Emirates.
- February 21, 2022, CS MEDICA A/S announced that the directed share issue of 100 000 shares to Diaz Capital Invest AB has been registered. Through the resolutions, the number of outstanding shares and votes increased by 100.000 shares, from 10.902.000 shares to 11.002.000 shares. The share capital increases by DKK 6.500 from DKK 708.630 to DKK 715.130, corresponding to a dilution of approximately 0,9 percent of the number of shares and votes in the Company.
- March 22, 2022, CS MEDICA A/S announced that the products CANNASEN®CBD Pain Patch, Protective Nasal Gel and CBD PSOR+ATOPIC Lotion have been launched on Matas webshop and are now available for online sales.
- March 23, 2022, CS MEDICA A/S announced that the United States Patent and Trademark Office has approved CS MEDICA’s trademark CANNASEN®, registration no. 6,624,142. The trademark for CANNASEN® is valid until November 19, 2028.
Significant events after the period
- April 6, 2022, CS MEDICA A/S announced that Heidi Ahlefeldt-Laurvig will take over as Chief Growth Officer (CGO) and Chief Marketing Officer (CMO).
- April 11, 2022, CS CS MEDICA announces that the Company has now finalised the Parts-per-billion (PBB) level THC test on their CANNASEN® CBD products, showing no trace of THC. Hong Kong, Thailand, Malaysia, and Japan are the countries that have legalized CBD products and with the PPB THC test results, CS MEDICA is now able to sell CANNASEN® CBD products in those countries.
- April 13, 2022, CS MEDICA announces that the Company has completed one national and two PCT continuation patents, out of the in total 7 patents applications covering 11 products.
- April 21, 2022, CS MEDICA announces that the Company has been approved by the Hong Kong customs and is now able to sell its CANNASEN® CBD products in Hong Kong. The Company has just received its first trial order from its sponsor/importer in Hong Kong.
- April 27, 2022, CS MEDICA announces that the CANNASEN® CBD products Pain Patch, Protective nasal gel, PSOR + ATOPIC lotion has been launched on Apopro’s Webshop and are now available for online sales. The Company also announces the CANNASEN®CBD Protective nasal gel has been launched on Matas and is now available on shelves in 186 Medicare stores. Previous product availability on Matas includes the medical devices CANNASEN®CBD Arthritis Gel, Psoriasis Gel, Anti-Hair Loss Serum and Hand Cream.
- April 28, 2022, CS MEDICA announces 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.
- May 2, 2022, CS MEDICA announces that the Company is expanding its sales channels by launching products through Amazon Sweden. The products CANNASEN®CBD Pain Patch, Protective Nasal Gel and CBD PSOR+ATOPIC Lotion, Anti-Hair Loss Serum, and Hand Cream are now available on Amazon Sweden’s webshop.
- May 2, 2022, CS MEDICA announces that due to delays from the COVID-19 lockdown, the Company’s revenue goal for the coming three financial years has been revised. The revenue goal for the year 2021/2022 is reduced to DKK 12 million from previously DKK 50 million. The revenue goal for the following financial year, 2022/2023, will be adjusted to DKK 65 million from previously DKK 150 million. The revenue goal of DKK 150 million is sought to be accomplished in the financial year 2023/2024.
- May 10, 2022, CS MEDICA announces that the Company has signed a distributor agreement with Alsitan GmbH (“Alsitan”). The agreement regards the sales of CS MEDICA’s arthritis gel under a private label in the German and Austria territory. The order amounts to 140,000 units and corresponds to an order value of DKK 4,4 million in revenue.
For more information about CS MEDICA, please contact:
Gitte Lund Henriksen, CFO
Phone: + (45) 2774 2280
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.