Apollo Capital Warns MediPharm Shareholders of Continued Value Destruction and Insolvency Risk Following Disastrous Q1 Financial Results
Apollo Capital, owning 3% of MediPharm Labs (OTCQB: MEDIF), has issued a stark warning about the company's financial deterioration following Q1 2025 results. The company reported a $3.3 million loss in Q1, with only $8.4 million remaining in cash. At the current burn rate, MediPharm risks insolvency by November 2025.
The company faces severe revenue decline across all segments: international sales dropped 18%, Canadian medical cannabis revenue fell 6%, and adult-use revenue declined 23%. After 21 consecutive quarters of losses, Apollo Capital is urging shareholders to support board-level changes by electing their six nominees to reverse the company's decline and prevent potential bankruptcy.
Apollo Capital, che detiene il 3% di MediPharm Labs (OTCQB: MEDIF), ha lanciato un severo avvertimento riguardo al peggioramento finanziario della società dopo i risultati del primo trimestre 2025. L'azienda ha registrato una perdita di 3,3 milioni di dollari nel primo trimestre, con solo 8,4 milioni di dollari di liquidità residua. Con il ritmo attuale di spesa, MediPharm rischia l'insolvenza entro novembre 2025.
La società sta affrontando un forte calo dei ricavi in tutti i segmenti: le vendite internazionali sono diminuite del 18%, i ricavi da cannabis medica canadese sono scesi del 6% e quelli da uso adulto sono calati del 23%. Dopo 21 trimestri consecutivi in perdita, Apollo Capital esorta gli azionisti a sostenere cambiamenti a livello di consiglio di amministrazione eleggendo i loro sei candidati per invertire il declino dell’azienda e prevenire un possibile fallimento.
Apollo Capital, que posee el 3% de MediPharm Labs (OTCQB: MEDIF), ha emitido una dura advertencia sobre el deterioro financiero de la empresa tras los resultados del primer trimestre de 2025. La compañía reportó una pérdida de 3,3 millones de dólares en el primer trimestre, con solo 8,4 millones de dólares en efectivo restante. Al ritmo actual de gasto, MediPharm corre el riesgo de insolvencia para noviembre de 2025.
La empresa enfrenta una fuerte caída en los ingresos en todos los segmentos: las ventas internacionales disminuyeron un 18%, los ingresos por cannabis medicinal en Canadá bajaron un 6% y los ingresos por uso adulto cayeron un 23%. Tras 21 trimestres consecutivos de pérdidas, Apollo Capital insta a los accionistas a apoyar cambios en la junta directiva eligiendo a sus seis nominados para revertir el declive de la empresa y evitar una posible bancarrota.
Apollo Capital은 MediPharm Labs (OTCQB: MEDIF)의 3% 지분을 보유하고 있으며, 2025년 1분기 실적 발표 후 회사의 재정 악화에 대해 강력한 경고를 발령했습니다. 회사는 1분기에 330만 달러 손실을 보고했으며, 현금은 840만 달러만 남아 있습니다. 현재의 자금 소진 속도로 미디어팜은 2025년 11월까지 지급불능 위험에 처해 있습니다.
회사는 모든 부문에서 심각한 매출 감소를 겪고 있습니다: 국제 매출은 18% 감소했고, 캐나다 의료용 대마초 매출은 6% 하락했으며, 성인용 매출은 23% 줄었습니다. 21분기 연속 손실 후, Apollo Capital은 주주들에게 회사의 하락세를 되돌리고 잠재적 파산을 막기 위해 이사회를 변화시키기 위해 자신들의 6명 후보를 선출할 것을 촉구하고 있습니다.
Apollo Capital, qui détient 3 % de MediPharm Labs (OTCQB : MEDIF), a lancé un avertissement sévère concernant la détérioration financière de l'entreprise suite aux résultats du premier trimestre 2025. La société a enregistré une perte de 3,3 millions de dollars au premier trimestre, avec seulement 8,4 millions de dollars de liquidités restantes. Au rythme actuel de dépenses, MediPharm risque l'insolvabilité d'ici novembre 2025.
L'entreprise fait face à une forte baisse de ses revenus dans tous les segments : les ventes internationales ont chuté de 18 %, les revenus du cannabis médical canadien ont diminué de 6 % et les revenus du cannabis récréatif ont baissé de 23 %. Après 21 trimestres consécutifs de pertes, Apollo Capital encourage les actionnaires à soutenir des changements au niveau du conseil d'administration en élisant leurs six candidats afin d'inverser le déclin de l'entreprise et d'éviter une éventuelle faillite.
Apollo Capital, das 3 % von MediPharm Labs (OTCQB: MEDIF) besitzt, hat eine deutliche Warnung bezüglich der finanziellen Verschlechterung des Unternehmens nach den Ergebnissen des ersten Quartals 2025 ausgesprochen. Das Unternehmen meldete einen Verlust von 3,3 Millionen US-Dollar im ersten Quartal, bei nur noch 8,4 Millionen US-Dollar an liquiden Mitteln. Bei der aktuellen Ausgabengeschwindigkeit droht MediPharm bis November 2025 zahlungsunfähig zu werden.
Das Unternehmen verzeichnet einen starken Umsatzrückgang in allen Segmenten: Der internationale Umsatz sank um 18%, die Einnahmen aus medizinischem Cannabis in Kanada fielen um 6% und die Einnahmen aus dem Freizeitbereich gingen um 23% zurück. Nach 21 aufeinanderfolgenden Verlustquartalen fordert Apollo Capital die Aktionäre auf, Veränderungen im Vorstand zu unterstützen, indem sie ihre sechs Kandidaten wählen, um den Niedergang des Unternehmens umzukehren und eine mögliche Insolvenz zu verhindern.
- None.
- Q1 2025 loss of $3.3 million with risk of insolvency by November 2025
- Cash position critically low at $8.4 million with doubled cash burn rate compared to Q1 2024
- Revenue declining across all segments: -18% in international sales, -6% in Canadian medical cannabis, -23% in adult-use
- 21 consecutive quarters of losses with no clear path to profitability
- No access to financing and no plans to reduce executive compensation or overhead costs
MediPharm is Dangerously Low On Cash and is On Track to Run Out of Money by November Unless Wholesale Change Occurs
MediPharm Lost Over
Apollo Capital Warns Shareholders Not to Be Misled by Management's Rosy Outlook: MediPharm has Reported 21 Consecutive Quarters of Losses, Yet CEO Pidduck Touted Adjusted EBITDA, a Cherry-Picked Figure That is Meaningless
Absent Significant Board Change, MediPharm Stock is On Its Way to Being Worthless! Apollo Capital's Nominees Bring the Turnaround Experience and Financial Discipline Required to Stop the Bleeding, Restore Fiscal Integrity, and Deliver Performance at MediPharm
Calls Upon MediPharm Shareholders to Support Change by Electing John Fowler, Alan D. Lewis, David Lontini, Demetrios Mallios, Regan McGee, and Scott Walters
Urges MediPharm Shareholders to Discard Any "GREEN" Proxy Card From Company
Apollo Capital believes that shareholders cannot afford to delay action any longer. Based on current cash burn rates, the Company will run out of money by November 2025, turning your
After carefully reviewing MediPharm's unaudited first quarter 2025 financial results, Apollo Capital has identified serious risks in MediPharm's business, which current management continues to ignore, while fixating on demonstrably false and misleading ad hominem attacks on Apollo Capital's principals. These observations include:
- MediPharm is on a collision course with insolvency. Management lost
$3.3 million $8.4 million
Meanwhile, CEO David Pidduck disingenuously stated on the most recent earnings conference call that "We have a strong cash position" and that "[t]he future has never looked brighter."1
It is MediPharm shareholders who will suffer the most as the Company's Board of Directors and management team have presented no credible plan to meaningfully enhance its cash position, or address the fact that the Company reported a first quarter cash burn two times as large as the first quarter of 2024, no access to financing, and no indication of cuts to executive compensation or other wasteful overhead.
- Revenue is severely collapsing across every segment. Despite management's repeated claims that "the plan is working," first quarter 2025 revenue fell
10% compared to the previous quarter. International sales, touted by management as the Company's growth engine, declined18% . Canadian medical cannabis revenue declined6% on an annualized basis, while adult-use revenue has nearly disappeared, falling23% annualized. This is a clear and accelerating meltdown of the business. - MediPharm has presented no credible path to profitability. While management has tried to spotlight a modest improvement in gross margins, gross profit in absolute dollars remains flat and nowhere near enough to cover inflated SG&A expenses. Management has offered no evidence that the business can scale, no clarity on what breakeven looks like, and no plan for achieving profitability as revenues decline and fixed costs remain high.
- Adjusted EBITDA is a meaningless indicator of financial performance and should be ignored. MediPharm's claim of near break-even performance on this metric ignores over
$437,000
Prior to MediPharm's first quarter 2025 financial results conference call, Apollo Capital issued a news release posing several questions for MediPharm should ask management. None of the questions were answered.
Apollo Capital's director nominees – John Fowler, Alan D. Lewis, David Lontini, Demetrios Mallios, Regan McGee, and Scott Walters – are committed to reversing MediPharm's rapid decline.
Don't be fooled by the MediPharm Board's and management team's false enthusiasm, distortion of facts, and personal attacks, which are intended to divert your attention from the Company's precarious and rapidly declining financial and operational condition.
We urge you NOT to sign or return the green proxy cards sent by the Company.
For Shareholders:
Carson Proxy
North American Toll-Free Phone: 1-800-530-5189
Local or Text Message: 416-751-2066 (collect calls accepted)
E: info@carsonproxy.com
For Media:
CureMediPharm@gasthalter.com
Legal Disclosures
Information in Support of Public Broadcast Exemption under Canadian Law
The information contained in this press release does not and is not intended to constitute a solicitation of a proxy within the meaning of applicable corporate and securities laws. Shareholders of the Company are not being asked at this time to execute a proxy in favour of Apollo's director nominees or in respect of any other matter to be acted upon at the Annual Meeting. In connection with the Annual Meeting, Apollo has filed a dissident information circular in compliance with applicable corporate and securities laws. Apollo has provided in, or incorporated by reference into, this press release the disclosure required under section 9.2(4) of NI 51-102 – Continuous Disclosure Obligations ("NI 51-102") and the corresponding exemption under the Business Corporations Act (
SHAREHOLDERS OF MEDIPHARM ARE URGED TO READ THE CIRCULAR CAREFULLY BECAUSE IT CONTAINS IMPORTANT INFORMATION. Investors and shareholders are able to obtain free copies of the Circular and any amendments or supplements thereto and further proxy circulars at no charge under MediPharm's profile on SEDAR+ at www.sedarplus.ca. In addition, shareholders are also be able to obtain free copies of the Circular and other relevant documents by contacting Apollo's proxy solicitor, Carson Proxy Advisors Ltd. ("Carson Proxy") at 1-800-530-5189, local (collect outside
None of Apollo, any other "dissidents" within the meaning of the Ont. Reg. 62 of the Business Corporations Act (
The costs incurred in the preparation and mailing of any circular or proxy solicitation by Apollo and any other participants named herein will be borne directly and indirectly by Apollo. However, to the extent permitted under applicable law, Apollo intends to seek reimbursement from the Company of all expenses incurred in connection with the solicitation of proxies for the election of its director nominees at the Annual Meeting.
This press release and any solicitation made by Apollo is, or will be, as applicable, made by such parties, and not by or on behalf of the management of the Company. Proxies may be solicited by proxy circular, mail, telephone, email or other electronic means, as well as by newspaper or other media advertising and in person by managers, directors, officers and employees of Apollo who will not be specifically remunerated therefor. In addition, Apollo may solicit proxies by way of public broadcast, including press release, speech or publication and any other manner permitted under applicable Canadian laws, and may engage the services of one or more agents and authorize other persons to assist it in soliciting proxies on their behalf.
Apollo has entered into an agreement with Carson Proxy Advisors ("Carson Proxy") for solicitation and advisory services in connection with the solicitation of proxies for the Meeting, for which Carson Proxy will receive a fee not to exceed
No member of Apollo nor any of their associates or affiliates has or has had any material interest, direct or indirect, in any transaction since the beginning of the Company's last completed financial year or in any proposed transaction that has materially affected or will or would materially affect the Company or any of the Company's affiliates. No member of Apollo nor any of their associates or affiliates has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Annual Meeting, other than the election of directors.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward‐looking statements. All statements contained in this filing that are not clearly historical in nature or that necessarily depend on future events are forward‐looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward‐looking statements. These statements are based on current expectations of Apollo and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. All forward-looking statements contained herein are made only as of the date hereof and Apollo disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which Apollo hereafter becomes aware, except as required by applicable law.
1 CEO David Pidduck comments on MediPharm first quarter 2025 financial results conference call held on May 14, 2025.
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SOURCE Apollo Technology Capital Corporation
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