CS MEDICA A/S has entered a joint venture with Inner Mongolia RongShi Hi-Tech Co. Ltd. regarding production of CS-Medica's CANNASEN® CBD medical products in China and distribution of CANNASEN® CBD products to the Asian market. The Joint Venture has been registered in Ordos, Inner Mongolia, China.

The JV will be a production company facilitating the production and delivery of the CANNASEN® product line to the Asian market. CS MEDICA will deliver all knowhow related to the acquisition and installation of the production line, as well as product related quality assurance according to GMP & ISO 13485 and approvals associated to the ongoing production. Furthermore, CS MEDICA will deliver all product and production instructions related to the ongoing production.

RongShi will be responsible for the funding related to the purchasing of land, building construction, equipment, and the installation of the production lines including gel line, patch line and inhaler line in Erdos High Tech Zone. After finalizing the installation, the JV will be responsible for the ongoing production processes according to instructions from CS MEDICA. Furthermore, RongShi will handle all coordination with and approvals by legal authorities related to the product line installation and commissioning.