Farmacosmo S p A : Closing For The Acquisition Of Bau Cosmesi Portal After The Operation Farmacosmo Will Detain 67% Of The Company Owner Of The Portal

PRESS RELEASE

CLOSING FOR THE ACQUISITION OF BAU COSMESI PORTAL

AFTER THE OPERATION FARMACOSMO WILL DETAIN 67% OF THE COMPANY OWNER OF THE PORTAL AND CONFIRMS ITS ENTRY IN

PET SECTOR WITH OWN BRAND PRODUCTS

Milan, February 2nd, 2023

Farmacosmo S.p.A. ("Company", "Farmacosmo"), a company active in the Health, Pharma & Beauty sector, listed on the Euronext Growth Milan market of Borsa Italiana, announces that on today's day, following the completion of the conditions precedent contractually established, the setting up of a new company called Baubau S.r.l. ("NewCo") has been perfected; NewCo incorporated 'baucosmesi.it' ("Bau Cosmesi", "Bau", "Portal"), an online store specialized in the sale of natural, vegan and made in Italy products for the care and hygiene of dogs.

Farmacosmo also announces that today the Shareholders' Meeting of the NewCo met and appointed a Board of Directors composed as follows: Andrea Bianchi (Founder of the Bau Cosmesi website) was appointed Chief Executive Officer, Federico Manna (Neapolitan civil lawyer) was entrusted with the role of Chairman and Stefano Colarieti (Strategic Planning & M&A Farmacosmo Specialist) completes the Board of Directors.

The transaction has a very important strategic value as it increases the value proposition of Farmacosmo, which consolidates its leadership in the e-commerce for beauty, care and well-being field, also in the pet industry.

The Bau Cosmesi portal has been active since April 2021 and in 2022 it totaled revenues of over Euro 300,000 with an increase equal to about 200% YoY, reaching the substantial break-even level in terms of EBITDA, with a net debt at the year-end equal to zero. The growth path was supported by the improvement of all the main business indicators. Specifically, for the year 2022: number of orders c. 9,700 (+143% YoY), number of loyal customers c. 1,600 (+201% YoY), conversion rate c. 2.4% (+18% YoY) and average cart at c. Euro 41 (vs Euro 35 of 2021).

The legal aspects of the operation were handled by PwC TLS with a team made up of lawyers Cristina Cengia, Pietro Negroni, who also handled the contractual aspects, while lawyer Paola Furosi took care of the intellectual property aspects. Notary Demetrio Maltese from Giamalex Notai Associati assisted the parties to the extent of its competence.

For more information, please refer to the press release dated January 9th, 2023.

***

This press release is available on the www.farmacosmoinvestors.comwebsite, section "Investors/Press Releases" and on the authorized storage mechanism "eMarket Storage" (www.emarketstorage.com).

***

THE SOCIETY

Farmacosmo is a company active in the Health, Pharma & Beauty sectors. The company's business model is based on the circular model of the l(ea)n strategy, and is divided into three main business areas: Logistics, Intelligence and Node. Logistics: enables the management and fulfillment of up to 12,000 orders per day, with delivery times of up to 20 hours from carrier picking and just-in-time procurement ('zero warehouse' policy). Intelligence: includes strategy definition, competitive positioning and customer journey activities, which enabled the company to intercept c. 188,000 customers in 2021. Recurring customers contributed 74% of the annual retail stream turnover. The average cart value of active customers in the retail stream amounted to €92 (€109 related to recurring customers). Node: R&D activities, process innovation and IT infrastructure of the company. Over the past five years, Farmacosmo's sales value has grown by 54% (CAGR 2016-2021) and will be around €58 million in 2021.

The Farmacosmo ecosystem aims to pursue standards of excellence in every part of its value chain, being inspired by compliance with ESG principles at all stages of the logistics process (from the packaging used for online orders to carbon compensation initiatives) and in the valorisation of its employees, the company's strategic asset. Farmacosmo's commitment to ESG is also underlined by the publication of its Sustainability Report 2021.

IDENTIFICATION CODES

Ordinary Shares: ISIN IT0005487670 (Ticker COSMO)

Warrant Farmacosmo 2022-2025: ISIN IT0005487415 (Ticker WCOSMO)

FOR FURTHER INFORMATION:
Farmacosmo	Illimity Bank	IR Top Consulting
Via Crispi, 51 - 80121 Napoli	Via Soperga, 9 - 20124 Milano	Via Bigli, 19 - 20121 Milano
Tel. [phone]	Tel. [phone]	Tel. [phone]
Paolo Cimmino [e-mail]	[e-mail]	Pietro Autelitano [e-mail]
		Domenico [e-mail]