Cosmos Health Provides Balance Sheet Update: Highlights European Investment Bank Financing Discussions for up to €25M, Eliminates 38% of Warrant Overhang with No Dilution; Reaffirms Growth Trajectory; Notes No Known Business Reason for Recent Share Price Decline

Rhea-AI Summary

Cosmos Health (NASDAQ:COSM) reported a stronger balance sheet and reaffirmed its growth outlook. Q1 2026 liabilities fell by $4.5 million (9.6%) quarter-over-quarter, while stockholders' equity rose 7.6% and the liabilities-to-assets ratio improved to 68.2%.

About 4.9 million Series B warrants expired unexercised, eliminating roughly 38% of warrant overhang with no dilution. The company is in discussions with the European Investment Bank for up to €25 million in R&D financing, holds real estate valued at about $15 million exceeding its market cap, and has a $300 million digital asset financing facility. FY2025 revenue reached a record $65.3 million, up 20% year-over-year, with Q1 2026 revenue of $17.9 million up 31%. Guidance through 2029 targets revenue of $200.6 million, gross margin of 35.5%, adjusted EBITDA of $44.2 million, cash of $62.9 million, and stockholders' equity of $92.3 million, with cash expected to exceed total debt by 2027. The company notes no known business reason for the recent share price decline.

Positive

• Total liabilities decreased by $4.5 million (9.6%) quarter-over-quarter
• Stockholders' equity increased 7.6% quarter-over-quarter
• Liabilities-to-assets ratio improved to 68.2% from 71.9%
• 4,874,126 Series B warrants expired, removing ~38% warrant overhang with no dilution
• Wholly owned real estate independently valued at about $15 million, above market cap
• FY2025 revenue of $65.3 million, up 20% year-over-year; gross profit up 83%
• Q1 2026 revenue of $17.9 million, up 31% year-over-year, highest Q1 recorded
• 2029 guidance: revenue $200.6 million, adjusted EBITDA $44.2 million, equity $92.3 million
• Guidance projects cash position of $62.9 million and cash exceeding total debt by 2027
• Discussions for up to €25 million EIB venture debt to support €50 million R&D program
• Financing facility of up to $300 million to support digital assets treasury strategy

Negative

• None.

News Market Reaction – COSM

+3.33%

8 alerts

+3.33% Session close to close

+9.5% Peak Tracked

-7.2% Trough Tracked

$15.18M Market Cap

1.4x Rel. Volume

In the Jun 2 session, COSM gained 3.33%, reflecting a moderate positive market reaction. Argus tracked a peak move of +9.5% during that session. Argus tracked a trough of -7.2% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement consolidates Cosmos Health’s recent deleveraging, warrant overhang reduction, EIB ...

Analysis

This announcement consolidates Cosmos Health’s recent deleveraging, warrant overhang reduction, EIB venture debt discussions up to €25M, and record revenue growth into a single balance sheet narrative. It highlights independently valued real estate of about $15M, a $300M digital assets facility, and 2029 targets of $200.6M revenue and $44.2M Adjusted EBITDA. Investors may track execution versus guidance, financing progress, and capital-structure changes registered under the S-3/A shelf.

Key Figures

Liabilities reduction: $4.5M (9.6%) Equity increase: 7.6% EIB financing discussions: €25M +5 more

8 metrics

Liabilities reduction $4.5M (9.6%) Quarter-over-quarter decrease in total liabilities

Equity increase 7.6% Quarter-over-quarter stockholders’ equity growth

EIB financing discussions €25M Potential Venture Debt funding under €50M R&D initiative

Series B warrants expired 4,874,126 Represents ~38% of total warrant overhang; no dilution

Real estate valuation $15M Wholly owned CosmoFarm and Cana facilities, independently valued

Digital assets facility $300M Financing facility supporting digital assets treasury strategy

FY2025 revenue $65.3M All-time record annual revenue, up 20% year-over-year

2029 revenue guidance $200.6M Guided revenue with 32% CAGR and margin expansion to 2029

Previous Crypto Reports

5 past events · Latest: May 26 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 26	Long-term guidance	Positive	+4.0%	Issued 2026–2029 guidance with revenue, margin, and cash-flow targets.
May 21	Warrant expiration	Positive	-10.2%	Expiration of 4.87M Series B warrants cutting outstanding warrant overhang.
May 14	EIB R&D advisory	Positive	+1.2%	Entered advisory agreement with EIB for potential €25M venture debt R&D funding.
May 12	S-1 withdrawal	Neutral	+0.1%	Withdrew Form S-1 for a previously planned but unused public offering.
May 11	Product revenue outlook	Positive	-7.6%	Projected over $3.2M annual U.S. revenue from Fort18 within 12–18 months.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Crypto-tag news has been mostly positive in tone, but price reactions have been mixed, with several positive announcements followed by negative moves, indicating inconsistent alignment between fundamentals-focused releases and short-term trading.

Recent Company History

Over the past months, COSM’s crypto-tag news has focused on growth guidance, warrant overhang reduction, EIB-related R&D financing discussions, withdrawal of an S-1, and projected revenue from Fort18. Reactions have ranged from a 4% gain on long-term guidance to double‑digit declines after warrant and Q1 updates. Today’s balance sheet and financing discussion update ties together these themes of deleveraging, capital-structure cleanup, and R&D funding.

Key Terms

convertible note, credit facility, venture debt program, warrants, +4 more

8 terms

convertible note financial

"driven by a substantial reduction in convertible note and credit facility balances"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

credit facility financial

"driven by a substantial reduction in convertible note and credit facility balances"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

venture debt program financial

"for financing of up to €25 million under the EIB's Venture Debt Program"

A venture debt program is a loan package designed for fast-growing, venture-backed companies to borrow money without selling large amounts of ownership. Think of it as a business line of credit that extends a startup’s cash runway so it can hire, build product, or hit milestones before raising more equity; investors watch these deals because they change a company’s repayment obligations, potential dilution (lenders may get rights to buy stock), and the odds of reaching a profitable exit.

warrants financial

"4,874,126 Series B Warrants have expired unexercised, eliminating approximately 38%"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

liabilities-to-assets ratio financial

"Liabilities-to-assets ratio improved by 370 basis points to 68.2% from 71.9%"

The liabilities-to-assets ratio measures how much of a company’s resources are claimed by debts and obligations by dividing total liabilities by total assets. It tells investors what portion of a company’s value is financed by creditors rather than owners; like checking how much of a house’s value is covered by a mortgage, a higher ratio means more leverage and financial risk while a lower ratio suggests a more conservative balance sheet.

digital assets financial

"digital assets and marketable securities of $2.1 million"

Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.

View in glossary

blockchain technical

"a platform to explore blockchain’s practical applications in healthcare"

A blockchain is a digital record-keeping system that securely stores information across many computers, making it difficult to alter or tamper with. Think of it like a shared, unchangeable ledger that everyone can see and verify, ensuring transparency and trust. For investors, this technology offers a way to securely track transactions and assets without relying on a central authority, potentially reducing costs and increasing security.

View in glossary

adjusted EBITDA financial

"Adjusted EBITDA reaching $44.2 million, operating cash flow of $24 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Significant Deleveraging: Total liabilities decreased by $4.5 million, or 9.6%, quarter-over-quarter, while stockholders' equity increased 7.6%
• Landmark Financing: R&D division in discussions with the European Investment Bank for financing of up to €25 million
• Capital Structure Simplification: 4,874,126 Series B Warrants expired unexercised, eliminating ~38% of total warrant overhang with zero shareholder dilution
• Real Estate Value: Wholly-owned facilities independently valued at approximately $15 million — exceeding current market capitalization  
  
• Balance Sheet Transformation: Guidance projects stockholders' equity of $92.3 million by 2029, driven by a growing cash position of $62.9 million from internally generated cash flow

CHICAGO, June 02, 2026 (GLOBE NEWSWIRE) -- Cosmos Health Inc. ("Cosmos Health" or the “Company”) (NASDAQ:COSM), a diversified, vertically integrated global healthcare group, today provides an update on its balance sheet and notes no known business reason for the recent decline in its share price.

While many of these developments have been reported individually, the Company believes it is important for investors to consider them collectively, as they reflect a business undergoing a fundamental balance sheet transformation.

Balance Sheet Continues to Strengthen
Cosmos Health's balance sheet is trending positively across multiple key metrics, as reported in the Company's Q1 2026 results:

• Total liabilities decreased by $4.5 million, or 9.6%, quarter-over-quarter, driven by a substantial reduction in convertible note and credit facility balances
• Stockholders' equity increased by $1.4 million, or 7.6%, quarter-over-quarter
• Liabilities-to-assets ratio improved by 370 basis points to 68.2% from 71.9% at year-end 2025
• Liquid assets of $4.3 million comprising cash of $2.2 million and digital assets and marketable securities of $2.1 million

Beyond the quarterly metrics, Cosmos Health's balance sheet is underpinned by a diversified asset base spanning GMP-certified manufacturing facilities, a robotic logistics warehouse, pharmaceutical distribution infrastructure, proprietary intellectual property, digital assets, and a growing U.S. commercial platform.

European Investment Bank — A Milestone for Cosmos Health's R&D
Cosmos Health's R&D division is in discussions with the European Investment Bank (EIB) for financing of up to €25 million under the EIB's Venture Debt Program, reflecting up to 50% of its broader €50 million R&D initiative. The EIB is the lending arm of the European Union and one of the world's leading multilateral financing institutions. If successfully concluded, this financing would represent a significant milestone for the Company's R&D platform, which is anchored by the proprietary AI-driven Cloudscreen drug repurposing technology and spans oncology, autoimmune diseases, neurology, and obesity.

Capital Structure Simplified — Zero Dilution
4,874,126 Series B Warrants have expired unexercised, eliminating approximately 38% of total outstanding warrants with no shareholder dilution. This represents a meaningful simplification of the Company's capital structure that directly benefits existing shareholders.

Real Estate Assets — Wholly Owned, Independently Valued at over $15 Million
Cosmos Health holds real estate assets — its CosmoFarm distribution facility and Cana Laboratories manufacturing site — with a combined fair market value of approximately $15 million, wholly owned and independently valued. A large portion of these assets are free of any mortgage or other financial encumbrance, providing the Company with additional financial flexibility. The market value of these assets alone exceed the Company's current market capitalization and represent a meaningful component of the Company's asset base the Company believes is not yet reflected in its share price.

Digital Asset Strategy — A Forward-Looking Treasury Approach
The Company secured a financing facility of up to $300 million to support its digital assets treasury strategy. The Company has commenced investments in digital assets, with the strategy providing balance sheet diversification and a platform to explore blockchain’s practical applications in healthcare, while retaining significant capital for core operations.

Record Momentum and Balance Sheet Transformation
Cosmos Health is growing at its fastest pace in Company history — FY2025 revenue of $65.3 million was an all-time annual record, up 20% year-over-year with gross profit growing 83%, followed by Q1 2026 revenue of $17.9 million, the highest Q1 in Company history, up 31% year-over-year, with momentum continuing into Q2 2026 across all core divisions.

The Company's recently published 2026–2029 guidance projects this trajectory to drive a structural transformation of the balance sheet: revenue growing to $200.6 million by 2029 at a 32% CAGR, gross margins expanding from 12.1% to 35.5%, Adjusted EBITDA reaching $44.2 million, operating cash flow of $24 million, a cash position of $62.9 million, and stockholders' equity growing 402% to $92.3 million — with all convertible debt projected to be fully repaid and cash expected to exceed total debt by 2027.

Greg Siokas, CEO of Cosmos Health, stated: “The fundamentals speak for themselves. Total liabilities are down $4.5 million in a single quarter, while stockholders' equity is up 7.6%. The market value of our real estate assets alone — wholly owned and independently valued at approximately $15 million — exceeds our current market capitalisation. Our R&D division is in discussions with the European Investment Bank for financing of up to €25 million toward a €50 million R&D program. We have eliminated 38% of our warrant overhang with zero dilution to shareholders. And our guidance projects revenue more than tripling to $200.6 million by 2029, with stockholders' equity growing fourfold to $92.3 million and a cash position of $62.9 million. We are aware that our share price has not reflected this progress, and we do not believe that disconnect is justified by our fundamentals. The growth is happening. We look forward to demonstrating that in the quarters ahead.”

About Cosmos Health Inc.

Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe®, C-Sept® and C-Scrub®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, www.zipdoctor.co, www.cloudscreen.gr, as well as LinkedIn and X.

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. Words such as “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could,” generally identify forward-looking statements, although not all forward-looking statements contain these words. These statements involve risks and uncertainties that may individually or materially affect the matters discussed herein for a variety of reasons outside the Company’s control, including, but not limited to: the Company’s ability to raise sufficient financing to implement its business plan; the effectiveness of its digital asset strategies, including accumulation and yield-generating activities; the impact of the war in Ukraine and ongoing conflicts in the Middle East and other regions on the Company’s business, operations, and the economy in general; the Company’s ability to successfully develop and commercialize its proprietary products and technologies; changes in interest rates; changes in foreign currency exchange rates, commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims, and litigation; the challenges of operating in international markets; the adequacy of insurance coverage; the effect of accounting charges and of adopting certain accounting standards; the impact of legal and regulatory changes, including changes to tax laws and regulations; guidance for fiscal 2026 and beyond and financial outlook. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described from time to time in our periodic reports filed with the SEC and available at the SEC’s website (www.sec.gov). There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements.

Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com

FAQ

How did Cosmos Health (COSM) improve its balance sheet in Q1 2026?

Cosmos Health reduced total liabilities by $4.5 million, or 9.6%, and increased stockholders’ equity by 7.6% quarter-over-quarter. According to Cosmos Health, its liabilities-to-assets ratio improved to 68.2%, supported by $4.3 million in liquid assets and a diversified operational asset base.

What is the significance of the European Investment Bank financing talks for Cosmos Health (COSM)?

Cosmos Health’s R&D division is in discussions with the European Investment Bank for financing of up to €25 million under the Venture Debt Program. According to Cosmos Health, this could fund up to 50% of its €50 million R&D initiative anchored by its Cloudscreen technology.

How does the warrant expiration affect Cosmos Health (COSM) shareholders?

About 4,874,126 Series B warrants expired unexercised, removing roughly 38% of Cosmos Health’s total warrant overhang with no dilution. According to Cosmos Health, this simplifies the capital structure and directly benefits existing shareholders by reducing potential future share issuance pressure.

What do Cosmos Health’s (COSM) 2025 results and Q1 2026 performance show about growth?

Cosmos Health reported FY2025 revenue of $65.3 million, up 20% year-over-year, with gross profit rising 83%. According to Cosmos Health, Q1 2026 revenue reached $17.9 million, up 31% year-over-year and the highest first-quarter revenue in the company’s history.

What are Cosmos Health’s (COSM) financial targets in its 2026–2029 guidance?

Guidance projects revenue rising to $200.6 million by 2029, with gross margin expanding to 35.5% and adjusted EBITDA reaching $44.2 million. According to Cosmos Health, cash is projected at $62.9 million and stockholders’ equity at $92.3 million, with cash exceeding total debt by 2027.

How important are Cosmos Health’s (COSM) real estate and digital asset strategies?

Cosmos Health owns distribution and manufacturing real estate independently valued at about $15 million, exceeding its current market capitalization. According to Cosmos Health, it also secured a financing facility of up to $300 million to support a digital assets treasury strategy and blockchain exploration.

Why does Cosmos Health (COSM) comment on its recent share price decline?

Cosmos Health states there is no known business reason for the recent decline in its share price, citing strengthening fundamentals and record growth. According to Cosmos Health, it believes the market value does not yet reflect its assets, guidance, and balance sheet transformation.