Lone Henriksen, CEO CS MEDICA, comments;

"With this JV agreement and business license in China we are stepping into a whole new area of the CS MEDICA. Together with RongShi we now have the necessary capacity in CS MEDICA to penetrate the Asian market with our CANNASEN®CBD medical products. I am truly looking forward to our cooperating with Mr. Gao (Jason), and with Guo Longlong (Harry), our Asian Director, who will be responsible for the Asian market. I am sure we together will reach new heights with the JV as well as for CS MEDICA".

[image]From Left: Mr Gao(Jason), Legal owner & General Manager, Inner Mongolia RongShi Hi-Tech Co., Ltd, Lone Henriksen, CEO, CS MEDICA A/S

Joint Venture
The JV will be a production company facilitating the production and delivery of the CANNASEN® product line to the Asian market.

CS MEDICA will deliver all knowhow related to the acquisition and installation of the production line, as well as product related quality assurance according to GMP & ISO 13485 and approvals associated to the ongoing production. Furthermore, CS MEDICA will deliver all product and production instructions related to the ongoing production.

RongShi will be responsible for the funding related to the purchasing of land, building construction, equipment, and the installation of the production lines including gel line, patch line and inhaler line in Erdos High Tech Zone. After finalizing the installation, the JV will be responsible for the ongoing production processes according to instructions from CS MEDICA.  Furthermore, RongShi will handle all coordination with and approvals by legal authorities related to the product line installation and commissioning.

First Board meeting and the Registration of the JV
According to the provisions of PR. China's "Company Law", the two shareholders, CS MEDICA and RongShi, of the Joint Venture held their first board meeting Thursday the 23[th] of March 2023, with following resolutions:

1. Agree to approve the Articles of Association of Rongshi Medica (Ordos) Co., Ltd.;

2. Agree that the board are represented by Mr Xue (board member), Lone Henriksen (board member) and Mr. Gao (Jason) (Chairman of the board), Mrs. Su (Supervisor)

3. Agree to establish the JV under the name "Rongshi Medica (Ordos) Co., Ltd."

4. Agree to appoint Mr. Gao (Jason) as the general manager (legal representative).

5. Agree to establish the JV production in the High-Tech Zone of Erdos.

6. Agree to distribute the CANNASEN®CBD medical products and cosmetic in Asia excluding India - starting with cosmetic in Thailand and Japan.

[image]From Left: Mr. Xue (Board member), Mr. Guo (Harry) (Asian Director - CS MEDICA). Mrs. Su (Supervisor), Gitte Lund Henriksen (CFO - CS MEDICA), Lone Henriksen (CEO - CS MEDICA & Board member), Mr. Gao (Jason) (Chairman of board & General Manager).

Mr Gao(Jason) General Manager of Rongshi Medica (Ordos) Co., Ltd., said,

"RongShi not only invests CS MEDICA in Denmark, but also setup "Rongshi Medica (Ordos) Co., Ltd." in my hometown Erdos because I, my partner Mr. Xue and my team believe that the medical cannabis and CBD medical products will have a huge potential in the following 5 years in the market of China and other Asian countries. Today in China hemp growing cover more than 50% of the global production of Hemp, and many extraction companies produces CBD using CO2 extraction technology. These kinds of companies are located in Yunnan province and Heilongjiang Province, China. With the Joint Venture we differentiate from these hemp growers and extraction companies. We only focus on the CBD medical devices products approved by local FDA. This will reduce the risk for "Rongshi Medica (Ordos) Co., Ltd." and CS MEDICA. We believe our cooperation will be success to reach the win-win."

Lone Henriksen, CEO CS MEDICA & Board Member of Rongshi Medica (Ordos) Co., Ltd, continues:

"We believe that RongShi & CS MEDICA is a very good match, as RongShi provide funding, investment, local network & business knowledge in Asia, whereas CS MEDICA provides the technology, quality assurance & registrations. We look forward to our very first exhibition at the Global pharmaceutical exhibition CPHI in Tokoy Japan April 19 - 21, 2023, where Rongshi Medica (Ordos) Co., Ltd. Participate together with CS MEDICA."

Business license obtained
Friday the 24[th] of March 2023, the JV was registered with the name RongShi Medica (Ordos) Ltd., with a registered capital of 50 million CNY (DKK 50,4 million). "Rongshi Medica (Ordos) Co., Ltd." ownership is divided with 51% to RongShi and 49% to CS MEDICA.

[image]From left: Mr. Guo (Harry) (Asian Director - CS MEDICA), Lone Henriksen (CEO - CS MEDICA & Board Member), Gitte Lund Henriksen (CFO - CS MEDICA), Mr. Gao (Jason) (Chairman of the Board & General Manager), Mr. Xue (Board member).

[image]Friday the 24[th] of March 2023,  the JV obtained their business license at the Ordos Local government.

Erdos  High Tech Zone
Erdos High-tech zone, a state-level hi-tech zone, is managed by Erdos government and covers an area of 270.6 square kilometers. It has four parks including Hi-Tech industry park, equipment manufacturing industry park, textile industry park and auto expo park with more than 2000 companies registered. Erdos Hi-Tech Zone is an important platform for Erdos industrial transformation and the main carrier of scientific and technological innovation.

The JV production lines will be the third pharmaceutical company located in the bio-Pharmaceutical part of Hi-Tech industry park of Erdos Hi-Tech Zone, and will receive different types of the policy supports from Erdos Hi-Tech Zone, such as technology project funding, patent funding, 5 years free tax, 3 years free-office and apartments, etc in the beginning of JV. The local government will help JV growing better and better.

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 26-03-2023 19:09 CET.