Crispr Therapeutics shares tumble after significant earnings miss
TORONTO - Apollo Technology Capital Corporation, which owns approximately 3% of MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF), a $200.77 million market cap company whose stock has gained nearly 24% over the past year, announced Wednesday it has issued a presentation outlining its plan to revitalize the company and increase shareholder value.
Apollo Capital is urging shareholders to vote for its six director nominees at MediPharm’s upcoming annual general meeting, claiming the current leadership has been "value destructive" over the past three years. According to InvestingPro data, the company’s financial health score is rated as "FAIR," with particularly concerning metrics in profitability.
The activist investor’s presentation criticizes current management for what it describes as "exorbitant executive compensation" despite poor performance, with the company reporting a negative return on assets of -3.44% and operating losses in recent quarters. Apollo Capital claims its plan could significantly increase the company’s share price and prevent potential insolvency.
"The time to act is now," Apollo Capital stated in its press release, encouraging shareholders to vote using its gold proxy card rather than MediPharm’s green proxy card.
Apollo Capital has engaged Carson Proxy Advisors as its proxy solicitor, with fees not exceeding $250,000, and Gasthalter & Co. as communications consultant for a minimum fee of $75,000 plus potential performance bonuses.
The presentation is available on Apollo Capital’s website, which also contains voting instructions for shareholders.
MediPharm Labs’ annual meeting date was not specified in the press release. The company has not yet publicly responded to Apollo Capital’s statements.
The information in this article is based on a press release statement from Apollo Capital. Investors should note that MediPharm’s next earnings report is scheduled for June 26, 2025. For deeper insights into MediPharm’s financials and exclusive analysis, visit InvestingPro.
In other recent news, Apollo Technology Capital Corporation, a significant shareholder of MediPharm Labs Corp., has called for a major overhaul of the company’s board. Apollo Capital, which holds about 3% of MediPharm’s common stock, is pushing for the election of six new directors at the upcoming Annual and Special Meeting of Shareholders on June 16, 2025. The investment firm has expressed concerns about MediPharm’s financial health, highlighting a potential depletion of cash reserves by November 2025 and a $1 billion loss in shareholder value under the current board’s oversight. Apollo Capital has criticized the board for a lack of transparency and accountability, particularly regarding the appointment of CEO David Pidduck, whose past involvement with Purdue Pharma was not disclosed to shareholders. The firm has proposed a series of measures to address these issues, including reducing executive compensation and implementing a performance-aligned compensation plan. Apollo Capital is urging shareholders to vote for its nominees using the gold proxy card, emphasizing the need for governance reforms and financial discipline. The firm has also accused the current board of obstructing a fair election process by not appointing an independent chair for the shareholder meeting. These developments are part of Apollo Capital’s broader campaign to address what it describes as mismanagement and financial distress at MediPharm Labs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.