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TORONTO - In a recent statement, Apollo Technology Capital Corporation (Apollo Capital), a significant shareholder of MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ), has voiced concerns over the company’s governance and the background of its CEO, David Pidduck. Apollo Capital, owning roughly 3% of MediPharm’s common stock, criticized the board for a lack of transparency and accountability, highlighting a $1 billion loss in shareholder value and a 99% decline in share price. The company, currently valued at $198.11 million, has shown some recent recovery with a 25.34% return over the past year, according to InvestingPro data.
Pidduck, who served as CEO & President of Purdue Pharma Canada from 2014 until December 2021, was implicated in the opioid crisis that has claimed over 34,000 Canadian lives. Apollo Capital emphasized that Pidduck’s past, including Purdue Pharma’s $20 million settlement in a class-action lawsuit and a $150 million settlement with Canadian governments, was not disclosed to shareholders when he was appointed CEO of MediPharm.
The investment firm is urging shareholders to reject MediPharm’s green proxy card and instead vote for Apollo Capital’s six director nominees at the upcoming Annual and Special Meeting of Shareholders on June 16, 2025. These nominees aim to hold the current board accountable for the substantial loss of shareholder value and for hiring a CEO with a controversial past. The company’s next earnings report is scheduled for June 26, 2025, with analysts forecasting an EPS of $0.03 for FY2025. Get deeper insights into MediPharm’s financial metrics and exclusive ProTips with an InvestingPro subscription.
The statement from Apollo Capital comes as part of a public broadcast solicitation in accordance with Canadian law and is supported by a dissident information circular filed with regulatory authorities. The circular details Apollo Capital’s director nominees and the reasons for the solicitation of proxies for their election.
This press release is based on a statement issued by Apollo Technology Capital Corporation and does not necessarily reflect the views of MediPharm Labs Corp. or its board of directors. Apollo Capital’s actions are part of a broader shareholder activism trend where investors seek to influence company management and policies they view as detrimental to shareholder value.
In other recent news, Apollo Technology Capital Corporation, a notable shareholder of MediPharm Labs Corp., has voiced serious concerns regarding the company’s governance and financial stability. Apollo Capital, holding about 3% of MediPharm Labs’ common stock, has accused the current board of obstructing a fair election process for the upcoming Annual and Special Meeting of Shareholders. The shareholder meeting is scheduled for June 16, 2025. Apollo Capital has proposed appointing six new directors, citing MediPharm Labs’ alarming financial distress and management misalignment with shareholder interests. The nominees, including John Fowler and Regan McGee, are expected to bring expertise in turnaround strategies and mergers.
Apollo Capital has highlighted significant financial risks, noting that MediPharm Labs could run out of funds by November 2025. The firm also criticized the current board for overseeing a substantial loss of shareholder value and receiving excessive compensation despite ongoing financial losses. To address these issues, Apollo Capital has proposed a comprehensive 5-Pillar Plan, which includes leadership changes and financial discipline measures. Shareholders are encouraged to vote for Apollo Capital’s nominees using the gold proxy card, in contrast to the company’s green proxy card. The information is based on press releases from Apollo Technology Capital Corporation.
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