STENOCARE A/S Embarks on Strategic Transformation with HQ Relocation and Cultivation Facility Exit

STENOCARE A/S
NASDAQ FIRST NORTH GROWTH MARKET, DENMARK
TICKER:  STENO

STENOCARE A/S (“Stenocare” or the “Company”) announced November 26, 2024, the new STENOCARE 3.0 strategy to transform into a leading trading company with medical cannabis products. With the successful completion of the Rights Issue in January 2025, Stenocare is now exiting the cultivation facility and relocating its HQ address to the Copenhagen facility. This will also result in significant costs reductions in 2025 and beyond.

The STENOCARE 3.0 strategy, unveiled on November 26, 2024, position the company as a leading provider of prescription-based medical cannabis products through a focused trading model. The strategy builds on the assets the company has developed since 2017, along with the proven logistical and distribution setup across six countries, featuring thirteen products approved for sale – including the new patented Astrum 10-10 product. As the medical cannabis industry evolved, it shifted towards outsourcing and strategic partnerships with specialised suppliers for efficiency and quality. STENOCARE is adapting to this evolution by moving from own cultivation to focusing on collaborating with trusted partners in Canada, Australia, Denmark and beyond. With STENOCARE 3.0, the Company will exit its cultivation facility in Denmark effective January 29, 2025. As described November 29, there will be no cash proceeds from this exit, as Stenocare will be relieved of all related costs for the cultivation facility, including the substantial long-term lease and equipment lease. This is equivalent to a financial obligation of approximately 14 million DKK over the next 6 years, which will no longer burden the company. Additionally, the Company will also have annual savings of approx. 4 mDKK on operating costs during 2025. As a result, Stenocare will change its Headquarter address from the Randers facility in Jutland to the Værløse facility near Copenhagen. There will be no change in email address and phone numbers.

Thomas Skovlund Schnegelsberg, CEO of Stenocare, comments on the change:

"We have successfully raised capital for the new STENOCARE 3.0 strategy, marking the beginning of our transformation into a trading company with a strong focus on innovation, driving sales growth, and expanding market share. While the first milestone—relocating our headquarters—may seem like a simple step, it signifies a pivotal moment in our strategic shift. With the exit from the cultivation facility, we are now fully committed to this exciting new chapter of growth and success."