CS MEDICA ("CS MEDICA" or "the Company"), along with Inner Mongolia RongShi Hi-Tech Co., Ltd ("RongShi"), is making progress in their newly established Joint venture, RongShi MEDICA (Ordos) Co. Ltd. ("RongShi MEDICA" or "JV").  Most recently, the JV signed up for participation in CPHI & PMEC 2023 in Shanghai on 19-21 June and CPHI in Guangzhou on 4-6 September 2023 where the JV will be showcasing its CANNASEN product portfolio.

Lone Henriksen, CEO of CS MEDICA and board member of RongShi MEDICA, comments

"We are excited to participate in CPHI & PMEC 2023, and we look forward to showcasing our CANNASEN[®] brand and products for the Asian and Chinese markets.  We have great expectations for this fair both in regard to potential sales and new partners."

Rongshi Medica (Ordos) Co., Ltd. is a joint venture between CS MEDICA (49%) and RongShi Hi-Tech Co., Ltd.(51%). The JV is responsible for setting up a production line for the CANNASEN products and to cater the Asian market. The production site will be established in Erdos, Inner Mongolia, in accordance with EU-GMP standards and ISO13485 standards including the gel production line, patch production line, and inhaler production line. RongShi is responsible for all capital investments of the JV including the land, construction, equipment, installation, etc. of all production lines and CS MEDICA is responsible for the approval of the CANNASEN® product line by the Chinese FDA, all technology, R&D, and the technology related to the JV's production lines.

• The JV is the exclusive partner of CS MEDICA in Asia excluding India.
• The JV uses Cannasen® CBD as its brand.  New packaging adapted to the Asian market will be designed jointly by the two shareholders.
• The JV will market and sell CANNASEN[®] MD and cosmetic products in Asia. Until the production site has been established, the JV will sell registered and approved CANNASEN products produced by CS MEDICA and sold to the JV. The products will be registered and approved in each Asian country they are marketed in. The registration process and market penetration will commence first in Asian countries with the least restrictive cannabis approval processes. The first pilot markets will be Thailand and Japan.

• RongShi has started the initial preparations for production line-related matters, such as the feasibility study report, environmental impact assessment report, energy assessment report, land, etc.
• RongShi has submitted the application for the "Certificate of Enterprise's Overseas Investment" (money transfer fulfilling the Investment Agreement[[1]][)] to the relevant government agencies.
• CS MEDICA is in progress with all documents required for the production line of the JV, such as technical documents, production line design, equipment list, budget and technology transfer contract, etc.
• CS MEDICA, assisted by R&G Pharmastudies CO. Ltd agency in China, has initiated the China FDA approval process for its MD CANNASEN® product line.  The agency will align its application process against an earlier attained Chinese FDA approval of two MD Class I CBD products.

• The JV will attend two fairs in the upcoming quarters.

- CPHI, China, 19-21 June 2023
- CPHI & PMEC, China, 4-6 September 2023
CPHI China is one of the largest pharmaceutical industry events in the world. The event is organized by UBM EMEA and is held annually in Shanghai, China. CPHI China provides business opportunities in the Chinese market. It is a significant event for anyone involved in the pharmaceutical industry and is attended by professionals from all over the world.
PMEC China is an international exhibition focused on the pharmaceutical industry, showcasing the latest technology and innovation.
Both CPHI and PMEC China are considered to be some of the most important pharmaceutical industry events in Asia, attracting a large number of exhibitors and visitors from around the world.

[1]The Investment Agreement include a directed issue of DKK 60 million at a share price of DKK 28.18. The investment is divided into two tranches each of DKK 30M. This first tranche is subject to the registration and approval of 3-5 of the CANNASEN CBD products by the China National medical Products Administration.  The second tranche of the investment is subject to the CS MEDICA reaching revenues of minimum DKK 62.4M in the 12-month period following payment of the first tranche. In the event the CS MEDICA is non-compliant with the requirements for the second tranche a total of nominal DKK 138,642 of new shares will be issued to RongShi for a total consideration of DKK 30 million.  More details about the Investment agreement can be found at the PM (https://news.cision.com/cs-medica-a-s/r/cs-medica-has-entered-into-agreement-with-investor-regarding-directed-share-issue-of-dkk-60m-at-dkk-,c3740834) published the 26[th] of March 2023.