- MediPharm Labs (MEDIF, Financial) faces severe financial challenges with a $3.3 million loss in Q1 2025.
- Company risks insolvency by November 2025, with only $8.4 million in cash remaining.
- Apollo Capital, owning 3% of MediPharm, urges shareholders to elect new board members for turnaround.
Apollo Capital, holding a 3% stake in MediPharm Labs (OTCQB: MEDIF), has issued a warning regarding the company's worsening financial condition following its Q1 2025 results. The company reported a significant $3.3 million loss for the quarter, with only $8.4 million left in cash reserves. At its current cash burn rate, MediPharm is projected to run out of funds by November 2025.
The company's revenues are declining sharply across all segments. International sales have fallen by 18%, the Canadian medical cannabis segment saw a 6% downturn, and adult-use revenue plummeted by 23%. This financial distress follows MediPharm's record of 21 consecutive quarters of losses, with no clear path to profitability.
In light of these troubling financial indicators, Apollo Capital is advocating for a change in the board of directors. The firm is recommending the election of six new nominees, including John Fowler, Alan D. Lewis, David Lontini, Demetrios Mallios, Regan McGee, and Scott Walters, to reverse the company's downward trajectory. Apollo Capital stresses the urgency for shareholders to support these changes to avert a potential bankruptcy.
