MediPharm Labs Corp. has responded to a dissident proxy circular filed on May 7, 2025, by Apollo Technology Capital Corporation, outlining Apollo’s intention 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.
In a letter to shareholders, Apollo alleges that the move is needed to hold MediPharm‘s Board accountable “for overseeing years of underperformance, failed operational strategies, outrageous compensation packages, and a lack of transparency, among many other failures.”
The letter introduces six proposed director nominees—John Fowler, Alan D. Lewis, David Lontini, Demetrios Mallios, Regan McGee, and Scott Walters.
While Apollo argues that MediPharm’s team has been burning through cash while the stock value has plummeted, MediPharm argues that Apollo has no concrete strategy to create sustainable value for shareholders, “only broad criticisms without substance or actionable solutions.”
While Apollo says MediPharm’s “do-nothing Board and management team” is driving the company “further into the abyss,” MediPharm says it rejects the allegations, saying the claims of breach of fiduciary duty by directors of the Company are “void of detail and without merit.”
MediPharm urges shareholders to take no action at this time, while Apollo asks that company shareholders submit a proxy as the company has yet to issue a formal notice of the Annual Meeting and its management information circular.
MediPharm owns VIVO Cannabis Inc., ABcann, and Canna Farms, the latter in the process of being sold to BC-based Rubicon Organics, which it expects to be completed in Q2 2025.
MediPharm’s reach includes medical patients in Canada through the Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical PTY and Beacon Medical GMBH.
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 company reported net revenue of $12 million for the three months ended December 31, 2024 (Q4 2024), gross profit of $3.6 million, and a net loss of $1.7 million, the most recent reporting period. MediPharm recently announced it plans to release its Q2 2025 results before markets open on Wednesday, May 14, 2025.
