#Canada #Toronto #Shareholder Value #MediPharm Labs #Apollo Technology

Apollo Technology Capital Takes Action for MediPharm Labs

In a bold move, Apollo Technology Capital Corporation has taken steps to reshape the board of directors at MediPharm Labs Corp, citing years of shareholder losses and a dramatic decline in stock value. With experience and a vision for revitalization, Apollo aims to restore confidence and profitability to the beleaguered cannabis company.

A Call for Change

MediPharm, once a star player in the cannabis sector, has seen its stock plummet by over 99% since mid-2019, causing a staggering loss of nearly $1 billion in market capitalization. This persistent downturn has prompted Apollo, which holds approximately 3.0% of MediPharm’s stock, to initiate a proxy campaign. At the upcoming Annual Meeting scheduled for June 10, 2025, Apollo will nominate six highly qualified candidates to replace those currently at the helm of MediPharm.

Apollo's letter to fellow shareholders outlines their dissatisfaction with the current board's performance, which they accuse of multiple failures including poor strategic planning and overwhelming compensation schemes that fail to align with company performance. The letter sharply criticizes MediPharm's upper management, emphasizing the need for a dramatic change to halt the downward spiral.

The Nominees

The proposed candidates bring a wealth of experience and a fresh perspective that Apollo believes will be critical to turning around MediPharm’s fortunes. The nominees include:

• - John Fowler: President of Muskoka Grown and former CEO of The Supreme Cannabis Company.
• - Alan D. Lewis: Co-founder and Chief Strategy Officer of The Aeon Group Inc.
• - David Lontini: Experienced board director and chairman with a robust background in business development.
• - Demetrios Mallios: Founder and CEO of The Aeon Group, well-versed in company turnaround strategies.
• - Regan McGee: Current Chairman and CEO of Apollo Technology Capital.
• - Scott Walters: A principal at Blaise Ventures with considerable industry connections.

These leaders bring a combination of operational expertise and strategic vision crucial for navigating MediPharm towards success. Apollo emphasizes that the new board will prioritize transparency, proper governance, and accountability to shareholders.

Urgency for Change

The declining stock performance of MediPharm can be traced back to a lack of strategic oversight from its current management. According to Apollo, the board has not only failed to provide direction but has also engaged in excessive spending and dilutive acquisitions, further stressing the company's financial stability. They highlighted how the CEO, David Pidduck, despite leading the company into significant losses, has enriched himself, becoming MediPharm’s largest shareholder through largely performance-decoupled stock grants.

Apollo believes that continuing on this path under the current board will lead to further destruction of shareholder value. They argue that it is imperative for MediPharm shareholders to act now by supporting Apollo's nominees, as the current leadership has demonstrated a lack of capability to manage effectively and restore shareholder confidence.

Moving Forward

In the lead-up to the annual meeting, Apollo is engaged in a campaign to educate and rally shareholders around their vision of a restructured MediPharm. They are committed to devising a turnaround plan that restores MediPharm’s market position and ensures long-term profitability for all stakeholders involved.

Investors are encouraged to keep an eye on upcoming communications from Apollo for essential voting instructions and more details about the nominated directors, which could pave the way for a new path for MediPharm Labs as they strive to revive the company's once-promising legacy.

Ultimately, the choice placed before shareholders symbolizes a critical juncture in MediPharm’s journey—and the stakes couldn't be higher as they face the realities of an ailing market in the competitive world of cannabis.