CS MEDICA A/S ("CS MEDICA"), a first mover in the development of Cannabidiol (CBD)-infused substance-based medical devices, announces the signing of a Letter of Intent (LOI) with GP Europe Holding B.V. ("GP Holding"), a distinguished entity in the hemp product sector based in Rotterdam, Netherlands.

This LOI marks the preliminary step towards establishing a potentially transformative partnership focused on supply chain enhancement and distribution agreements, paving the way for possible investment or merger scenarios.
 

Under the terms of the LOI, both companies aim to capitalize on their respective strengths to foster innovation and enhance market offerings. Key aspects of this collaboration include:

1. Joint Research & Development: CS MEDICA and GP Holding aim to engage in joint R&D efforts to create pioneering products that integrate GP Holding's expertise in hemp-based products with CS MEDICA's advanced pharmaceutical research capabilities and CBD technology.
2. Product Portfolio Expansion: The partnership aims to integrate CS MEDICA's CBD-infused substance-based medical devices into GP Holding's product portfolio. This strategic move is designed to broaden consumer choices and enhance market penetration by cross-promoting products across diverse customer bases.
3. Strategic Partnership Development: The collaboration aims to strengthen both companies' market positions by optimizing production capacities and improving supply chain efficiencies, which are crucial for scaling operations and achieving economic benefits.

Lone Henriksen, CEO of CS MEDICA, commented on the partnership: "Our heavy investments and commitment to R&D, compliance, and patent protection positions us strongly in the evolving market, particularly with the consumer shift towards Evidence-Based Complementary and Alternative Medicine (CAM). This partnership with GP Holding represents a strategic alignment to enhance our supply chain and financial robustness, essential for scaling our operations and boosting our market lead."

Lone further elaborates on the strategic direction moving forward: "Today, we navigate our challenges by partnering with exceptional CMOs who meet the stringent quality and regulatory demands of our products and provide the flexibility needed as a smaller player in the market. In aligning with GP Holding, we foresee an opportunity to create a seamless value chain from seed to shelf, significantly impacting our cost structures and lead times, enhancing our financial robustness and market agility."

Waldo van der Hel, the representative from GP Holding, shared his perspective: "We see significant potential in the pharmaceutical sector, particularly with CS MEDICA's innovative approach in the CBD space. Our collaboration is poised to extend our product lines and presence in global markets and leverage economies of scale to optimize our production capabilities."

This LOI is the first step in a series of negotiations, with both parties committed to detailed due diligence and further discussions to finalize the terms of their partnership.