The back-and-forth between a cannabis company and an investment firm continues to intensify in advance of an upcoming shareholder meeting.

Apollo Technology Capital Corporation has been raising concerns with management decisions made by MediPharm Lab Corp’s board of directors, first filing a dissident proxy circular in May, outlining a goal to nominate six individuals for election to MediPharm’s board of directors at MediPharm’s upcoming annual and special meeting of shareholders, scheduled for June 16, 2025.

Apollo Capital is one of the largest shareholders in MediPharm Labs, with about 3% of the company’s common stock. MediPharm, which owns VIVO Cannabis Inc. and ABcann, has urged its shareholders to take no action at this time. 

In a letter to shareholders in May, Apollo alleged that its aggressive move to replace the board is needed to hold MediPharm’s leadership accountable “for overseeing years of underperformance, failed operational strategies, outrageous compensation packages, and a lack of transparency, among many other failures.”

In response, MediPharm Labs Corp. alerted its shareholders to publicly available information about Regan McGee, the controlling shareholder, director, Chairman and CEO of Apollo Technology Capital Corporation.

Apollo filed an amended and restated dissident proxy circular on May 20, 2025, seeking to elect McGee and five other directors to the MediPharm board of directors at the company’s Annual and Special Meeting of Shareholders scheduled for June 16, 2025.

Then, on May 23, Apollo also said that MediPharm Labs’ Board of Directors did not respond to Apollo Capital’s “With Prejudice” offer to the Board.

In a press release dated June 2, MediPharm Labs announced that Institutional Shareholder Services published a report on May 30, 2025, arguing that MediPharm shareholders should not vote on the dissident proxy card, as it alleges that Apollo did not provide a compelling case for change. 

Apollo also appears to have run ads to promote their efforts, directing people to a website called Cure MediPharm Now.

Then, in a press release on June 3, Apollo’s leadership alleged that MediPharm CEO David Pidduck is looking to sell the company to cash out his shares. 

On June 5, MediPharm announced the completion of the sale of a cannabis facility in BC to cannabis producer Rubicon Organics for $4.5 million in cash. 

MediPharm has sold products into 10 international markets and has significant business in Australia, Germany, and Brazil. The company also recently launched Canadian-produced GMP Beacon Medical Brand cannabis oil and inhalation cartridges in the Australian medical market.

The cannabis producer reported net revenue of $10.8 million, gross profit of nearly $4.2 million, and a net loss of $387,000 in the three months ending March 31, 2025 (Q1 2025). 

The Ontario-based company’s net revenue increased 10.6% from the same reporting period in the previous year (Q1 2024), while gross profits increased 57.8% and net losses decreased by 744.7% from a $3.7 million loss in Q1 2024.

The company incurred $723,000 in excise taxes from $11.5 million in revenue in the first three months of 2025. The company also reports 87% year-over-year growth in international medical cannabis sales revenue.

MediPharm says it has reduced operating expenses by over $40 million on an annualized basis in the past several years, compared to the combined MediPharm and VIVO Cannabis operations in the first quarter of 2022.

The company also states that it will expand its cultivation capacity by approximately 30% at its EU GMP-certified Napanee facility to enhance its ability to meet the growing international demand for pharmaceutical cannabinoid products, particularly in Europe and Australia.

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