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TORONTO - Apollo Technology Capital Corporation, a significant shareholder of MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ), has launched a campaign to appoint six new directors to the company’s board, citing urgent need for change due to MediPharm’s financial distress and management misalignment with shareholder interests. The company, currently valued at $201.21 million, has received a "FAIR" overall health score according to InvestingPro analysis, with particularly concerning metrics in profitability and growth.
According to a press release issued on Tuesday, May 20, 2025, Apollo Capital, which holds approximately 3% of MediPharm’s common stock, has nominated John Fowler, Alan D. Lewis, David Lontini, Demetrios Mallios, Regan McGee, and Scott Walters for election at the Annual and Special Meeting of Shareholders scheduled for June 16, 2025. The nominees are expected to bring a wealth of turnaround, mergers and acquisitions, and operational expertise to the board.
Apollo Capital’s move comes in response to MediPharm’s alarming rate of cash burn, with projections indicating the company could deplete its cash reserves by November 2025. The press release highlights that MediPharm’s current board and management have overseen a loss of $1 billion in shareholder value and have been receiving exorbitant compensation packages despite persistent losses. Recent financial data from InvestingPro shows the company reported a negative net income of $17.5 million and negative free cash flow of $7.96 million in the last twelve months, underlining the urgency of the situation.
The campaign website, www.CureMediPharm.com, outlines Apollo Capital’s 5-Pillar Plan to rebuild the company, which includes replacing leadership, implementing financial discipline, retaining strategic assets, unlocking international medical growth, and restoring trust through transparency and good governance. Despite these challenges, the company maintains a relatively stable revenue stream of $25.43 million and a healthy gross profit margin of 71%, suggesting potential for recovery under proper management.
Apollo Capital urges shareholders to vote for its nominees using the gold proxy card, in contrast to MediPharm’s green proxy card, to initiate the proposed board changes. The press release also includes instructions for shareholders on how to revoke previously submitted proxies in favor of the new slate of director nominees.
The press release asserts that a complete board change is essential for MediPharm Labs’ recovery and emphasizes the importance of shareholder action. It is based on a press release statement from Apollo Technology Capital Corporation.
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