The Board of Directors of CS MEDICA A/S ("CS MEDICA" or "the company") confirms today the delisting of the company by Spotlight Stock Market, effective January 9, 2025, is final. After an thorough evaluation of several company delisting's over the past year and a careful assessment of available options to protect shareholder interests, the Board of Directors has prioritized strengthening company growth and operations while exploring alternative trading solutions, leveraging proven strategies employed by other delisted companies, to safeguard shareholder and company value after the last trading day.
 

Background of CS MEDICA
CS MEDICA was admitted to trading on Spotlight Stock Market in 14. September 2021 as a CBD-focused company, launching its first products into the market at the end of 2020. Today, three years later, CS MEDICA is a scale-up company operating at the intersection of highly regulated medical device markets and a growing CBD sector. While the company today is perceived as a MedTech among pharmaceutical competitors, customers, and in the latest German valuation report it holds a DNA in R&D, IP rights, safe CBD technologies, manufacturing, compliance and commercialization. The company has made significant progress in transitioning under strict global medical device regulations, the longer-than-expected go-to-market lead times however have resulted in modest organic growth and challenges to liquidity and growth pace.
 

Impact on Shareholders
The delisting will result in the absence of a regulated marketplace for trading the company's shares. Future trading may take place over-the-counter (OTC), which is one of the solutions the Board is currently pursuing to ensure continued share tradability in the short term.

Following the delisting, CS MEDICA will no longer be subject to the Spotlight Stock Market's disclosure obligations under the Market Abuse Regulation (MAR). However, the company will continue to comply with the International Financial Reporting Standards ("IFRS") as adopted by the EU, the Danish Companies Act, and the Danish Financial Statements Act. This ensures ongoing corporate accountability and transparency in the company's financial reporting.

Shareholders are encouraged to review notifications from their shareholding platforms, such as Avanza, Nordnet and others, and contact their respective providers for specific guidance regarding their accounts. Based on information observed, the following considerations may be relevant:

• Sweden Investment Savings Accounts (ISK): Notifications indicate that delisted shares cannot remain in ISK accounts and may need to be transferred to securities and fund accounts (AF). Shares might not automatically return to ISK accounts if the company is relisted.
• Sweden Avanza (KF): Delisted shares may remain in KF accounts.
• Nordnet Investment Savings Accounts (ISK): According to Nordnet's notifications, shares held in ISK accounts may be transferred to regular securities accounts, as the Investment Savings Account Act does not permit delisted securities in ISK accounts.
• Other Account Platforms: Shareholders should reach out to their providers for specific instructions.
• Pensions: Shareholders holding shares in pension accounts should contact their pension providers for clarification.
• Tax Implications: The delisting may impact the tax treatment of CS MEDICA shares, as they will no longer be listed on a regulated marketplace.

Shareholders are advised to contact their shareholding platforms or financial advisors for detailed guidance on how the delisting may affect their individual situations.
 

Future Prospects for CS MEDICA
Despite this development, CS MEDICA remains focused on its core mission and long-term strategy to deliver shareholder and company value. The company's Board and management will prioritize:

1. Operational & Commercial Growth: Strengthening the company's market position through focused execution of core business activities and ensuring sustainable revenue generation.
2. Financial Sustainability & Funding: Reinforcing the company's financial foundation by securing funding for core operations and growth initiatives, leveraging existing partnerships, and exploring new financing opportunities.
3. Strategic Opportunities: Exploring potential avenues for relisting when market conditions and financial benefits are clearly aligned.
4. Capital Injection via CANNORDIC IPO: Re-evaluate the planned IPO of CANNORDIC in Germany to identify the best market conditions and financial benefits for both the company and current shareholders.
5. Long-Term Value Creation: Remaining open to strategic partnerships or a potential sale of the company, if it serves the best interests of shareholders.

Commitment to Shareholders
The company regrets the impact of Spotlight's decision on its shareholders and the resulting decline in its market cap. The Board fully understands that some shareholders may choose to sell their shares during the Continued Trading Period. The Board, management, and major shareholders have committed to hold their shares and will not sell during this period. For shareholders who choose to retain their shares, we are dedicated to doing our utmost to safeguard and enhance the prospects of CS MEDICA.

To stay informed, shareholders are encouraged to register for updates at cs-medica.com newsletter and follow Cision News, which the company will continue to utilize.
 

Best regards,

Board of Directors
Flemming Heegaard
Chairperson of the Board
CS MEDICA A/S