#Canada #Toronto #MediPharm Labs #Apollo Technology #Regan McGee

MediPharm Labs Responds to Dissident Shareholder's Filing

On May 8, 2025, MediPharm Labs Corp., a prominent biotechnology firm focusing on precision-based cannabinoids, notified its shareholders about a recent development concerning a dissident shareholder, Apollo Technology Capital Corporation. On May 7, Apollo submitted a dissident proxy circular, indicating their intentions to nominate six candidates for MediPharm's board of directors during the upcoming Annual and Special Meeting of Shareholders, scheduled for June 16, 2025.

In light of these events, MediPharm is preparing a detailed response, though the company has taken the opportunity to voice immediate concerns regarding the dissidents' claims. Here are the key points highlighted by MediPharm in their announcement:

1. Lack of Viable Plans: MediPharm criticized Apollo for failing to propose a concrete strategy that would genuinely benefit shareholders. Describing Apollo's allegations as vague and non-actionable, the company aims to emphasize its commitment to delivering sustainable value through proven strategies and exemplary leadership that have been in place.

2. Concerns Over Leadership Track Record: The current board raised significant reservations about the qualifications of Apollo's lead dissident, Regan McGee, and other proposed nominees. There are apprehensions surrounding their leadership history and past performance, which the board believes could jeopardize the company's future growth.

3. Allegations Dismissed as Meritless: MediPharm firmly rejected allegations of fiduciary duty breaches by its directors as unfounded and detailed. The company cautioned shareholders about the misleading nature of these claims and reiterated their strength against any baseless allegations.

4. Procedural Compliance Issues: MediPharm pointed out that Apollo's submission did not comply with corporate bylaws, as it failed to provide essential information regarding the independence of its nominees. The company has taken formal steps to address these deficiencies by notifying Apollo's legal counsel as required by regulations.

MediPharm urged its shareholders to remain patient and refrain from taking any action until further guidance is provided. The firm anticipates releasing a complete Management Information Circular that will contain comprehensive details on the board's recommendations and a thorough response to Apollo’s proposals.

The company expressed confidence in its current leadership and strategic direction, affirming that they are the best positioned to drive MediPharm’s ongoing transformation and growth ambitions in the global market.

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in high-quality pharmaceutical-grade cannabis-related products. The company prides itself on its advanced technology and stringent Good Manufacturing Practices, ensuring the delivery of safe and effective cannabinoid solutions. Its notable achievements include receiving the first-ever commercial-scale Good Manufacturing Practices License in North America for multiple cannabinoid extractions, allowing the company to expand internationally.

In 2023, MediPharm increased its market share by acquiring VIVO Cannabis Inc., thereby enhancing its service offering to medical patients via established healthcare platforms across Canada, Australia, and Germany.

MediPharm Labs operates under strict compliance with all relevant laws and regulations in each of its operational markets, solidifying its position as a trusted provider in the evolving cannabinoid industry.

Looking Ahead

The forthcoming weeks will be indicative of MediPharm's strategic paths as it navigates through the shareholder challenges posed by Apollo. As they prepare for the Annual Meeting of Shareholders, stakeholders will be keenly observing the company's actions and evolving plans.