MediPharm Labs: A Beacon of Governance in a Storm of Activism

Amid escalating shareholder conflicts and regulatory scrutiny, MediPharm Labs Corp. (TSXV: LAB) stands at a pivotal crossroads. The cannabis biotech firm is defending its governance integrity against aggressive activist tactics by Apollo Technology Capital Corporation, while maintaining a pristine financial record. For investors, this clash offers a rare opportunity to assess the company's resilience—and its potential as a value-driven play in a consolidating industry.

Clean Audits and Regulatory Compliance: A Foundation of Trust

MediPharm's financial transparency is underpinned by an unblemished audit history. The company has received clean audit opinions every year since becoming public, including its most recent 2025 audit by MNP LLP, completed just three months ago. This consistency aligns with strict adherence to International Financial Reporting Standards (IFRS) and continuous disclosure obligations under Canadian securities laws.

While public companies are not required to audit quarterly results—a practice MediPharm emphasizes is neither legally mandated nor common—the firm's annual audits reflect a commitment to accountability. This contrasts sharply with its critics' opaque tactics.

Litigation Against Misinformation: Defending Reputation and Shareholder Value

Apollo's allegations of financial malfeasance have been explicitly rejected by MediPharm as “baseless” and part of a “misinformation campaign.” The company has taken legal action to address these claims, seeking to halt what it calls “material misstatements” and recover costs from the dispute.

The stakes are high: Apollo's nominees, including figures tied to the embattled Check-Cap Ltd. (NASDAQ: CKCP), have a history of governance failures, including $6M in controversial transfers to Apollo-linked entities and a board turnover rate exceeding 70% at Check-Cap. MediPharm's Board has raised red flags about these nominees' track records, citing conflicts of interest and operational instability at Check-Cap—a cautionary tale of shareholder value destruction.

Activist Threats: A Test of Governance and Strategic Resilience

Apollo's push to gain board control hinges on its “Dissident Plan,” which remains vague and lacks specifics. MediPharm's management argues this plan risks diverting resources from core strengths, such as its Health Canada GMP license—a rare distinction for cannabinoid producers—and its post-acquisition expansion via VIVO Cannabis.

The company's rebuttal is forceful: allowing Apollo's nominees to take control could expose MediPharm to governance failures seen at Check-Cap, including 7 CEOs and CFOs in 18 months, unresolved regulatory filings, and a 65% share price collapse. MediPharm's Board is urging shareholders to vote only for its nominees via the GREEN proxy, emphasizing that its leadership has delivered measurable growth while maintaining compliance.

Why MediPharm's Positioning Matters for Investors

1. Regulatory Fortitude: MediPharm's GMP certification and ISO standards position it as a credible player in medical cannabis markets, especially as regulators tighten scrutiny.
2. Strategic Acquisitions: The VIVO acquisition expanded its footprint into key markets like Canada, Australia, and Germany, diversifying revenue streams.
3. Litigation Posture: Legal action against Apollo underscores the Board's willingness to defend its reputation—a critical signal for long-term investors.
4. Undervalued Potential: With its stock price down 30% since early 2024 amid activist noise, the shares may offer upside if shareholders reject the dissident nominees.

Investment Takeaway: A Resilience Play Amid Volatility

MediPharm's situation is a classic governance stress test. While activist campaigns can create short-term volatility, the company's clean audits, regulatory compliance, and strategic focus on high-margin medical markets position it as a defensive stock in a consolidating industry.

Shareholders should heed the Board's warnings: voting for the dissident nominees could jeopardize the company's operational stability and partnerships. Conversely, a vote of confidence in MediPharm's leadership could unlock value as it capitalizes on its licenses and international scale.

For investors seeking stability in cannabis biotech, this is a moment to act. MediPharm's governance strength and financial transparency form a sturdy moat against activist overreach—and a compelling case for buying now.

Final Call to Action: Vote GREEN. Support MediPharm's proven management. Seize the opportunity to invest in a resilient, compliant leader.