The Catalyst for Cannabis Turnaround: Why MediPharm’s Proxy Battle Matters Now

The cannabis sector has long been a proving ground for both innovation and volatility. Yet, few companies exemplify the sector’s struggles—and its potential for resurgence—more than MediPharm Labs. As the June 16 shareholder meeting approaches, the company stands at a crossroads: cling to a leadership team with incremental gains, or embrace a dissident’s radical vision for survival. For investors, this proxy battle is no mere corporate squabble—it’s a referendum on whether shareholder activism can finally unlock value in an industry plagued by missteps.

A Fragile Turnaround, A Fierce Fight

MediPharm’s journey since 2022 has been a tale of two halves. Under CEO David Pidduck, the company slashed costs, exited non-core markets, and acquired VIVO Cannabis in 2023—a move that expanded its footprint in Germany, Australia, and Brazil. These efforts bore fruit: net revenue rose 27% in 2024, gross margins improved to 31%, and cash burn slowed. Yet, the cracks remain. As of March 2025, MediPharm’s cash reserves stood at just $8 million, with a burn rate threatening to exhaust these funds by November. Over the past six years, shareholders have lost an estimated $1 billion in value.

This precarious position has drawn the attention of activist investor Apollo Technology Capital. With a 3% stake, Apollo has launched a proxy bid to replace the entire board, citing governance failures, opaque financial reporting, and a lack of urgency in addressing the company’s liquidity crisis. Their 5-Pillar Plan promises leadership overhaul, financial discipline, asset retention, international growth focus, and governance reforms.

Why Activism Could Be the Lifeline MediPharm Needs

Critics of the proxy bid dismiss Apollo’s small stake and its nominees’ credentials (including Regan McGee, whose litigious history has raised red flags). But this misses the bigger picture: MediPharm’s current trajectory is unsustainable.

1. The Cash Crunch Is Existential:
   With $8 million left and a burn rate exceeding $1 million/month, the company has fewer than eight months to secure new capital or cut costs further. Without intervention, survival hinges on a miracle.

2. Governance Gaps Matter:
   While MediPharm touts independent committees and diversity efforts, its track record tells another story. Executive compensation rose even as losses mounted pre-2024, and the board’s recent additions (e.g., Keith Strachan) lack the financial expertise to navigate this crisis.

3. Apollo’s Pressure Could Force Tough Choices:
   The dissident’s 5-Pillar Plan demands exactly what MediPharm needs: ruthless cost-cutting, divestiture of non-core assets, and a singular focus on high-margin medical markets. Even if Apollo’s nominees are imperfect, their pressure could prod the board to act decisively.

The Risks of Inaction—and the Reward of Courage

Supporters of the current board argue that progress is underway. They point to narrowing losses, a 50%+ international revenue split, and plans to achieve positive EBITDA by year-end. But these gains are fragile. MediPharm’s stock trades at pennies—a stark reminder that investors have lost faith.

Meanwhile, Apollo’s threat to seize control—even with a 3% stake—has already forced the company to address governance weaknesses. The proxy battle itself has drawn scrutiny to MediPharm’s financial health, potentially accelerating strategic moves like asset sales or partnerships.

The real prize lies in the post-battle scenario: If Apollo wins, it must deliver. Even skeptics must acknowledge that the mere threat of change has already raised the stakes. MediPharm’s board, faced with a credible challenge, is now incentivized to prove its worth—whether through a preemptive deal or by finally aligning its strategy with shareholder needs.

A Call to Action: Vote for Change

For shareholders, the math is clear. A “no change” vote risks MediPharm’s collapse by late 2025. A “yes” vote to Apollo’s nominees, while risky, could force the hard choices needed to survive—and perhaps thrive.

The cannabis sector’s next phase demands more than incrementalism. It requires bold leadership, ruthless prioritization, and accountability. MediPharm’s proxy battle is not just about this company—it’s a test of whether shareholder activism can finally drive real transformation in an industry that has too often prioritized hype over substance.

Act now. The clock is ticking.

Investors should vote via the GOLD proxy card by June 16 to support Apollo’s nominees and demand accountability. For assistance, contact Sodali & Co. or visit www.CureMediPharm.com.