- Apollo Technology Capital Corporation, owning 3% of MediPharm Labs, challenges current management amid severe stock depreciation.
- MediPharm (MEDIF) has lost 99% of its stock value, translating to nearly $1 billion in shareholder losses.
- Apollo Capital proposes six new directors for board restructuring and seeks improved transparency and accountability.
Apollo Technology Capital Corporation ("Apollo Capital"), a significant activist shareholder with a 3% stake in MediPharm Labs (TSX: LABS, OTCQB: MEDIF, FSE: MLZ), has raised critical questions for MediPharm's management ahead of a forthcoming conference call with shareholders. This marks the first such engagement since Q2 2024, following a disastrous 99% drop in MediPharm's stock value, resulting in approximately $1 billion in shareholder losses.
The timing of the conference call appears to be prompted by Apollo Capital's recent announcement to nominate six new directors at the upcoming Annual Meeting on June 16, 2025. Apollo Capital's nominees, including John Fowler and Alan D. Lewis, aim to introduce turnaround expertise, merger and acquisition strategies, and operational improvements to MediPharm's leadership team.
Current MediPharm management faces harsh criticism from Apollo Capital for poor performance, suspect accounting practices, excessive executive compensations, and lack of transparency. Shareholders are encouraged to question these issues during the call, particularly regarding management's strategy for addressing the company's precarious financial position and ensuring future growth.
Apollo Capital argues that MediPharm requires a board focused on performance and shareholder value restoration. They caution shareholders against supporting the existing management's proxy solicitations and instead advocate for a comprehensive board overhaul to realign the company's trajectory and governance practices.
