CS MEDICA

As we draw closer to significant milestones for both CS MEDICA A/S and its subsidiary CANNORDIC A/S, we are pleased to share updates on the latest strategic developments. These updates stem from resolutions passed at the Extraordinary General Meeting (EGM) held on June 28, 2024, and provide insights into our plans for an Initial Public Offering (IPO) and dual-listing strategy.
 

1. Upcoming CS MEDICA Dual Listing:

• We continue preparations for the dual listing of CS MEDICA A/S on the German Growth Stock Exchange. The 28/6 EGM granted our Board of Directors the authority to proceed with the listing of a multilateral trading facility (MTF) in Germany.
• A detailed company analysis is underway and will soon be released. This will provide shareholders and the market with insights into CS MEDICA’s valuation, market position, and the anticipated impact of the dual listing, which remains scheduled for this year.
• The dual listing will not only improve liquidity but also increase international visibility for CS MEDICA, benefiting all shareholders.
   

2. The Current Market Situation for CS MEDICA Share in Germany:

• Germany represents one of the largest markets in the EU for audiences that are well-informed about alternative treatments within health care. Our products integrate strict medical device regulations with the therapeutic benefits of bioactive CBD to offer treatments with fewer side effects—a demand we see growing among patients. Consequently, we focus on enhancing our presence in Germany through targeted awareness campaigns aimed at BtBtC channels and investors, driving growth and facilitating capital infusion.
• Today our CS MEDICA shares are actively traded on four German growth exchanges, including the international XETRA exchange, with press releases distributed via the EQS news agency. Since April over 175,000 CS MEDICA shares have been traded on the Börse Frankfurt and other German growth exchanges, reflecting growing interest and liquidity.
   

3. CANNORDIC IPO & Pre-sale Process:

• As approved during the EGM 28/6 2024, CS MEDICA’s subsidiary CANNORDIC A/S is set to list on the German Stock Exchange with an initial valuation of DKK 223.8 million (€30 million), with 5.000.000 shares and a share price of €6. This reflects the company’s growth potential and solid market positioning.
• Valuation context: Based on our financial advisors' pre-valuation of CANNORDIC at €30 million, if we factor this into CS MEDICA’s total 12,622,635 shares, it suggests a share price of DKK 18.16 at CS MEDICA level. However, this valuation accounts only for CANNORDIC and excludes other key assets, such as CS MEDICA’s IPR rights, regulatory approvals, and subsidiaries like CANNORDIC India Ltd, Galaxa Pharma, and our joint venture. Therefore, DKK 18.16 represents just a portion of CS MEDICA’s total value. The final valuation report is currently being prepared in collaboration with our external partner in Germany. We anticipate that it will be finalized and ready for dissemination in October, allowing us to strategically prepare for the forthcoming milestone.
• Once the CS MEDICA analysis is complete, we will begin drafting the CANNORDIC prospectus, which is an essential part of the IPO process. This will ensure the market is fully informed of CANNORDIC's strategic value and its role in our growth plan. We are committed to finalizing this promptly to stay on track for the planned 2024 IPO.
• We are in the final stages of digitalizing these shares, a process expected to be completed within the next 14 days, marking an important step toward an IPO launch.
• After digitizing the CANNORDIC shares, we will launch the pre-sale as detailed in our latest CEO Letter dated September 2, 2024. This initial offering will involve 20% of CANNORDIC shares, targeting 5,000 selected potential investors. These shares will be available at a pre-valuation price of €6 per share, amounting to an approximate total value of 44.8 million DKK. Early participants in the pre-sale will benefit from a 10% discount on the share price.
   

4. Distribution of CANNORDIC Shares to Current Shareholders of Parent Company, CS MEDICA:

• As announced on July 26, 2024, we are evaluating the possibility of distributing CANNORDIC shares to our existing CS MEDICA shareholders as part of a pre-IPO rights allocation. This initiative, which was also discussed at the EGM, will enhance value for our loyal shareholders and reinforce their participation in the growth of both CS MEDICA and CANNORDIC.
• Details on the cut-off date for shareholder registration to participate in this distribution will be communicated shortly.
   

We are optimistic about our ongoing progress on various fronts and remain steadfastly committed to enhancing shareholder value as we advance into these critical stages. We will continue to evaluate our strategies in light of market feedback and key milestones and will make adjustments if necessary to align with the best interests of our company and shareholders.

Best regards
Lone Henriksen,

CEO CS MEDICA