During the past month we successfully participated in the Vitafoods events where the company's fully owned subsidiary, CanNordic was nominated as one of the most innovative companies with unique, ground-breaking ingredients, formulations and products. CanNordic took part in the Innovation Tour 2022 and the live stage Vitafoods Europe 2022 new product presentations.  The trade fair exceeded all expectations and the trade fair stand got unsurpassed attention accomplished by an overwhelming amount of leads. During the 2,5 days at the fair trade, we collected more than 200 leads[1], which are now in process.  Within our business this is quite noticeable, where normally 64 leads would have been considered as a successful number of leads following this kind of fair trade.

During the coming months, our clinical trials within Arthritis are to be finalized in phase III, which hopefully will help up close several of our ongoing negotiations with key distributors.  Subsequently, we expect to complete clinical trials in the field of Psoriasis. The result from the clinical trials will be published on minimum two Science platforms with the help of The University of Naples Federico II (http://www.international.unina.it/)[2][i], expectedly within this year.

The Cannabis industry is at a torrid pace with mergers and acquisitions continuing to break ground in 2022.  In the last months, another two acquisitions can be added to the list. Cresco Labs became the market leader in cannabis with their $2 billion acquisition of Columbia Care (https://investors.crescolabs.com/investors/press-releases/press-release-details/2022/Cresco-Labs-to-Become-the-New-Leader-in-Cannabis-with-the-Acquisition-of-Columbia-Care/), with a footprint of over 130 stores in eighteen markets. Australia's Incannex Healthcare paid $93.3M (https://www.bloomberg.com/press-releases/2022-03-24/incannex-to-acquire-apirx-pharmaceuticals-usa-llc) to acquire Dutch cannabis company APIRx Pharmaceutical BV, one of the first ASX-listed companies to make forays into cannabinoid and psychedelic therapeutic drugs. This deal positions Incannex to target the $120 billion global addressable market of cannabinoid and psychedelic therapeutics. Inherently, these two transactions reflect hugely distinct business models, which will likely dictate the evolving investor approach in the years to come within both horizontal and vertical consolidation and investments. 

These developments and progressions together with our intensive focus on sales give me great confidence in CS MEDICA's ability to execute according to our strategy and meet our revenue goals.

Significant events since the last CEO letter

• May 10, 2022 (https://news.cision.com/cs-medica-a-s/r/cs-medica-signs-distributor-agreement-with-alsitan---order-value-4-4-mdkk,c3564400), CS MEDICA has signed a distributor agreement with Alsitan GmbH. 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.
• May 20, 2022 (https://news.cision.com/cs-medica-a-s/r/cs-medica-follow-up-on-their-participation-in-the-innovation-tours-2022-at-the-vitafoods-europe-2022,c3569646), CS MEDICA was chosen to Vitafoods Europe 2022 Innovation Tours at the Vitafoods Europe 2022 trade fair the 10-12 May 2022. CS MEDICA's fully owned subsidiary CanNordic a/s represented the Company and showcased the CANNASEN ®CBD product line with the purpose to target new distributor agreements.
• May 20, 2022 (https://news.cision.com/cs-medica-a-s/r/cs-medica-a-s-secures-6-mdkk-in-loan-financing-to-maintain-momentum,c3577138), CS MEDICA announced that it has secured loan financing of a total of approximately 6 MDKK from Bizcap AB, Gerhard Dal, and Råsunda Förvaltning AB.

New sales channels since the last CEO letter
BtC channel sales (Galaxa Pharma): Currently we have more than 500 sale channels in the Nordic area, with more to come.  In May the following CANNASEN® CBD product releases and launches has been fulfilled;

• Launch - Dinapoteker.dk- online

Psoriasis, Arthritis, Pain Patch, Protective nasal gel, Antibacterial hand cream

• Launch - Apotekeren.dk

Psoriasis, Arthritis, Anti-Hair loss Serum, Pain Patch, Protective Nasal gel, Antibacterial hand cream, PSOR + ATOPIC lotion

• Launch - webapoteket.dk

Psoriasis, Arthritis, Anti-Hair loss Serum, Antibacterial hand cream, Pain Patch

• Launch - apopro.dk

Psoriasis, Arthritis, Anti-Hair loss Serum, Pain Patch, Protective nasal gel, PSOR + ATOPIC lotion Antibacterial hand cream

• Launch - helsebixen.dk

Arthritis, Psoriasis, Anti-Hair loss Serum, Antibacterial hand cream

• Med24.dk + med24.se

Psoriasis, Arthritis, Anti-Hair loss Serum

• Launch of new brand site in DK - cannasen.dk

All CANNASEN® CBD products

Objectives and activities June
Distributor sale (Cannordic): During the coming month, starting today, we have the following expectations;

• Signing several Distributor and private label agreements.
• Receipt of orders from several Distributor and private label agreements

BtC channel sales (Galaxa Pharma): During the coming month we are expecting the following CANNASEN® CBD product releases and launches;

• Product releases in Denmark

- CANNASEN® CBD Nasal Night
- CANNASEN® CBD wound gel

• Launch - Dinapoteker.dk- online

Anti-Hair loss Serum, Protective nasal gel, PSOR + ATOPIC lotion

• Launch - webapoteket.dk- online

Protective nasal gel, PSOR + ATOPIC lotion, Pain Patch

• Launch - Apotekeren.dk - landing page
• Launch - Amazon.se

Anti-Hair loss Serum, Nasal Night, Wound gel

• Expected start up - Launch Amazon sales channel in Germany

Clinical trials: Unfortunately we are still struggling with delays in our clinical trials. But in the comming month we now expect to have the following clinical trial finalised;

Clinical trial - phase III

• Arthritis gel versus Placebo
• Arthritis gel & Arthritis Caps versus Arthritis gel & Placebo Caps

both documented and published on minimum two Science platforms with the help from The University of Naples Federico II (http://www.international.unina.it/), expectedly within this year.

Technology: The preliminary test of our CIM in beta version, is postponed due to a lack of resources and focus on sales. We expect to be able to start up this test within the next coming months, to secure our launch of post-market-clinical trials together with local disease organizations, such as Psoriasis and Arthritis organization in Denmark.  Studies like this are incredibly important, not only for the data they bring but also in terms of relationship building with disease organizations, medical practitioners, business administrators and future leaders. They are a key part of our commercialization efforts.

--------------oooo--------------

Hope you enjoyed our CEO letter.  We are looking forward to keeping you updated with our company's industry and field of business in future CEO letters. 

[1] A sales lead is a potential sales contact, individual or organization that expresses an interest in your goods or services. Leads are typically obtained through the referral of an existing customer or through a direct response to advertising or publicity.

[2] The School of Medicine and Surgery, Italy - Department of Pharmacy - with more than 10 years' experience in cannabinoids, endocannabinoids and the endocannabinoid system.