Cosmos Health Raises Key Funding to Launch Ethereum Treasury Reserve

By
Maxwell Mutuma
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Cosmos Stays Busy in 2020
  • Cosmos Health’s launch of an Ethereum Treasury is a long-term move, aligning its capital strategy with digital innovation trends.
  • Traditional healthcare firms are now tapping into blockchain
  • Strategic funding enables rapid product and market expansion
     


Cosmos Health Inc. (NASDAQ: COSM), one of the players representing diversified global healthcare established organizations, has made a significant financial leap towards its next step. The company has signed a securities purchase agreement with an institutional U.S.-based investor. The agreement offers up to a $300 million financing facility, which is expected to assist Cosmos Health in its Ethereum Treasury reserve.

The capital will be extended in the form of a senior secured convertible promissory note. The use of the proceeds is outlined, and at least 72.5% should be used to form the company’s digital asset treasury reserve. The balance left will aid in business expansion and operational ventures.

Company to Launch Ethereum Treasury Strategy

This financing was termed by its CEO, Greg Siokas, a strategic milestone for the company. According to him, Cosmos Health is not experimenting with digital assets. Rather, it is undertaking a long-term plan to incorporate Ethereum into its more comprehensive financial and developmental model.

This endeavor would give our shareholders direct exposure to Ethereum, as expressed by Siokas. Ethereum is still among the most utilized digital assets worldwide. The plant will strengthen our capital base to increase the growth, development, and production of the products in the United States.

Siokas also backed the fact that this measure represents Cosmos Health’s long-term investments in digital assets and blockchain technology. This is not a temporary switch. He continued, “We are concerned with long-term value generation.”

Funding to Support Broader Growth Goals

Besides working on developing the Ethereum Treasury, the money will assist in funding product development, advanced research, and commercial growth. Cosmos Health intends to focus on the fast-track entry of its U.S pharmaceutical manufacturing through its existing first-rate infrastructure and worldwide network.

This financing was done with Curvature Securities, LLC as the exclusive placement agent. The agreement has terms under which conditions need to be complied with or waived before each tranche is issued.

The formal summary of the transaction is in the company’s Current Report on Form 8-K, which is available at the Securities and Exchange Commission’s website, www.sec.gov.

Cosmos Health Expands Global Healthcare Reach

Cosmos Health was started in 2009 in Nevada and operates a vertically integrated healthcare structure. It owns several pharmaceutical and nutraceutical brands, such as Mediterranation(r), Sky Premium Life(r), and Bio-bebe (r).

Its manufacturing division is Cana Laboratories S.A., a GMP-certified company with a license from the European Medicines Agency. Cosmos Health also manufactures branded and unbranded drugs, and it has a presence in Greece and the UK.

The firm is expanding to Europe, Asia, and North America. This research and development department is working towards fighting some of the main health-related issues, such as diabetes, obesity, and cancer, supplemented by AI-driven drug discovery.

Another form of entry by the Cosmos Health Company is entering the telehealth market through its acquisition of ZipDoctor, Inc., which has widened its sales in the U.S. digital health sector.

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