Cosmos Health Provides Update on Recent Developments, Maintains Strong Financial Position, Reaffirms Commitment to Growth, and Highlights CEO’s Continued Investment Now Exceeds $15 Million

CHICAGO, IL / ACCESSWIRE / July 25, 2023 / Cosmos Health Inc. (“Cosmos Health” or the “Company”) (NASDAQ:COSM), a global healthcare group with proprietary lines of nutraceuticals and distributor of pharmaceuticals, branded generics, OTC medications and medical devices, today provided an update on recent developments, reaffirming the management team’s belief and commitment to future prospects, and highlighting CEO Greg Siokas’ participation in all capital raises since inception.

The Company maintains a robust balance sheet with negligible debt and a strong, diversified asset base, including tangible assets such as unencumbered freehold properties as well as machinery and equipment with a fair market value in excess of $12 million. Additionally, among other things, it holds a highly valuable Good Manufacturing Practices (GMP) license, allowing it to manufacture medicines within the European Union, which will play an increasingly important role in the future, and owns a proprietary portfolio of branded nutraceuticals with unique formulations.

The management team reiterates its belief in Cosmos Health’s attractive growth prospects and commitment to profitability. This commitment is driven by several factors, including, among others, the integration and development of recently announced acquisitions (Cana Laboratories, Bikas GP, and ZipDoctor), future potential acquisitions, notable progress in R&D with products advancing through various stages, including an obesity and weight management product in clinical trials, and constant growth of its nutraceutical brands, Sky Premium Life and Mediterranation, taking advantage of its expanding infrastructure of facilities worldwide, as well as leveraging its new brands inherited via the acquisition of Cana Laboratories, which include Eleon Cosmetics, C-Sept, and bio-bebe.

On July 21, 2023, the Company raised gross proceeds of approximately $5.25 million, before deducting fees and other estimated expenses, from a registered direct offering and concurrent private placement. The Company expects to use the net proceeds from the offering for working capital, general corporate purposes, closing previously announced acquisitions and funding future potential acquisitions. While the offering was at a lower valuation than originally envisaged by the Company’s board, it served certain important strategic objectives. In addition to allowing the Company to raise valuable capital, most importantly, it also resolved several legacy issues stemming from previous financing activities. Specifically, the offering successfully addressed a longstanding limitation, removing the right of participation from multiple investors. This streamlined approach replaces the more complex situation that previously entailed involvement from multiple investors. As a result, in the latest offering, only one party participated, a multi-billion-dollar fund with a strong specialization in the healthcare space, demonstrating confidence in the Company’s growth prospects, management team, and strategy. Going forward, this essentially provides a “clean slate” approach for future initiatives. Management is of the opinion that this outcome provides a more sustainable platform to capitalize on future opportunities from investors who have a longer-term outlook on the Company, including strategic investors who are more knowledgeable within the healthcare space.

So far in 2023, CEO Greg Siokas has invested approximately $450,000 in the aforementioned offering. He has also invested approximately $400,000 to acquire Cosmos Health shares in several private transactions between April and June 2023, bringing his total investments to approximately $850,000 year-to-date. Mr. Siokas has no intention of selling any shares. Additionally, since the inception of Cosmos Health, Mr. Siokas has demonstrated unwavering commitment by investing over $15 million in the Company. He has consistently and actively participated in all capital raises, spanning a range of prices, including $2.48 per share, $11.5 per share, and even more than $100 per share, while also waiving his right to warrants twice, at $11.5 per share and $2.48 per share, underscoring his dedication to supporting the Company throughout its journey and achieving its long-term objectives. Mr. Siokas continues to be the largest shareholder of the Company.

Management is exploring several value enhancement initiatives, as it believes that its share price has not responded appropriately to a series of positive events year-to-date.

Greg Siokas, Chief Executive Officer of Cosmos Health, stated, “We are committed to enhancing shareholder value through strategic efforts and operational improvements. With the latest capital raise, which resolved various technicalities under our voting structure, I am pleased that we have addressed several long-standing legacy issues to establish a more sustainable platform for future efforts, ensuring greater flexibility and the opportunity to capitalize on new opportunities as they present themselves. Of particular importance is that we can engage with more sophisticated investors, even if limited to one investor at a time. We believe this is in the best interests of shareholders in the long run, despite any potential short-term setbacks.

“We are excited to see Cosmos grow and develop its operations across the globe, whether this relates to our food supplement products, the new brand portfolio we acquired through Cana, our ability to now produce medicines, or our R&D program. We are not slowing down. We need to be disciplined to integrate our acquisitions thus far, an exercise which requires time and additional capital, but the anticipated returns are expected to be very favorable.

“We are also looking at additional M&A opportunities. To this end, we are already in discussions for a new acquisition located in the southeastern part of the United States, although no assurances can be given that the envisaged acquisition will successfully close.”

Mr. Siokas concluded that “I continue to invest my personal assets into Cosmos. This year alone, I have invested almost one million dollars to acquire Cosmos Health shares as well as participated in our latest offering. We are operating our Company with a long-term outlook, and I am more excited than ever about our growth and profitability prospects. My interests have always been and will continue to be aligned with those of shareholders.”

About Cosmos Health Inc.

Cosmos Health Inc. (Nasdaq:COSM) is a global healthcare group that was incorporated in 2009 and is headquartered in Chicago, Illinois. Cosmos Health is engaged in the nutraceuticals sector through its own proprietary lines of products “Sky Premium Life” and “Mediterranation.” Additionally, the Company is operating in the pharmaceutical sector through the provision of a broad line of branded generics and OTC medications and is involved in the healthcare distribution sector through its subsidiaries in Greece and UK serving retail pharmacies and wholesale distributors. Cosmos Health is strategically focused on the R&D of novel patented nutraceuticals (IP) and specialized root extracts as well as on the R&D of proprietary complex generics and innovative OTC products. Cosmos Health has developed a global distribution platform and is currently expanding throughout Europe, Asia and North America. Cosmos Health has offices and distribution centers in Thessaloniki and Athens, Greece and Harlow, UK. More information is available at www.cosmoshealthinc.com and www.skypremiumlife.com.

Forward-Looking Statements

With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could”, are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company’s ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic and the war in Ukraine, on the Company’s business, operations and the economy in general, and the Company’s ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company’s filings with the SEC, which are available at the SEC’s website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com
+44 207 0971 653

SOURCE: Cosmos Health Inc.

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