- MediPharm Labs (TSX: LABS) reported a 27% revenue increase in 2024 with improved gross margins.
- Adjusted EBITDA loss reduced by $8.3 million to $1.9 million in 2024.
- Facing a proxy battle from Apollo Technology Capital Corp, which owns 3% of shares.
MediPharm Labs Corp. (LABS) has announced its filing of proxy materials for the Annual and Special Meeting of Shareholders scheduled for June 16, 2025, amidst an ongoing proxy battle with dissident shareholder Apollo Technology Capital Corp. Despite the turbulence, the company reported significant financial improvements in 2024. Revenue increased by 27% year-over-year, enhancing gross margins to 31% from 18% the previous year. Additionally, MediPharm reduced its Adjusted EBITDA loss by $8.3 million, narrowing it to $1.9 million for the year.
The strategic transformation led by CEO David Pidduck since 2022, including the successful acquisition of VIVO Cannabis, has been pivotal. The VIVO acquisition not only doubled the company's revenue but also opened new international markets, with $10 million annual revenue generated in Australia. The synergies from VIVO have contributed to halving operating expenses and bolstering international sales, which exceeded 50% of revenues in both Q4 2024 and Q1 2025.
Despite these advancements, MediPharm is embroiled in a proxy contest initiated by Apollo Technology Capital Corp. Apollo, holding 3% of MediPharm's shares, has proposed a slate of six alternative candidates for the board. MediPharm’s board has expressed significant concerns regarding Apollo’s nominees, citing the controversial business history of their chairman, Regan McGee, and a lack of industry experience among the proposed directors.
The company's revenue streams remain diverse, with no single category exceeding 35% of the total revenue. The portfolio includes products such as flower, oil, vape, and pre-rolls, distributed across international medical, Canadian medical, Canadian adult use and wellness, as well as pharmaceutical and B2B channels.
MediPharm continues to focus on its strategic plan to drive sustainable long-term shareholder value, urging shareholders to support the current board's nominees by voting using the GREEN proxy card.
