- MediPharm Labs (TSX: LABS) warns shareholders against voting for three of Apollo's director nominees due to poor governance history at Check-Cap Ltd.
- Check-Cap's share price fell 65%, from $2.47 to $0.85, under the management of these nominees, David Lontini, Alan D. Lewis II, and Regan McGee.
- MediPharm's Board advises caution as Check-Cap faces potential delisting from Nasdaq.
MediPharm Labs Corp. (TSX: LABS), specializing in pharmaceutical-grade cannabis products, has issued a caution to its shareholders regarding three out of six board nominees put forward by Apollo Technology Capital Corporation. These nominees, David Lontini, Alan D. Lewis II, and Regan McGee, have been linked to poor governance practices at Check-Cap Ltd., including questionable financial transactions and management instability.
Under these nominees' leadership, Check-Cap has seen a significant decrease in its share price, dropping 65% from $2.47 in March 2024 to $0.85 in May 2025. This decline poses a risk of Nasdaq delisting due to its sub-$1.00 share price. Additionally, Check-Cap's management has faced high turnover, with multiple CEO/CFO changes and seven director resignations.
MediPharm has highlighted the alarming transfer of $17 million from Check-Cap to Apollo-related entities, including a $6 million loan to Nobul and $11 million allocated for Nobul's growth initiatives, raising concerns about the motives behind these transactions.
In light of these issues, MediPharm's Board encourages shareholders to carefully consider their votes at the upcoming Annual Meeting on June 16, 2025, and to be wary of promises made by the Dissident Nominees.
