- MediPharm Labs (TSX: LABS) Board criticizes Apollo's takeover plan as inadequate and potentially harmful.
- The Board highlights significant progress under CEO David Pidduck, with 87% international revenue growth in Q1 2025.
- Key risks of Apollo's plan include potential loss of customers and disruption to business operations.
MediPharm Labs Corp. (TSX: LABS) has issued a critical response to Apollo Technology Capital Corp.'s proxy campaign, emphasizing that Apollo's plan threatens the company's progress and could harm existing business relationships. Apollo, holding a mere 3% of shares, aims for complete board control at the upcoming June 16, 2025, meeting.
The MediPharm Board defends the accomplishments under CEO David Pidduck, noting significant achievements such as an 87% year-over-year growth in international revenue during Q1 2025, alongside a $42 million reduction in operating expenses on an annual basis. These results underscore the effectiveness of the current leadership's strategy.
In stark contrast, the Board warns against Apollo's proposed changes, which include replacing the CEO and ceasing strategic asset sales. The Board argues that such actions could undermine MediPharm's advancements in pharmaceutical-grade cannabinoids and its international development.
Furthermore, the Board expresses concern over Apollo's plans potentially leading to the loss of crucial relationships, including that of a key European customer who has threatened to cease business if Apollo gains control. The Board stresses that Apollo's vague strategies and lack of a coherent plan could destabilize the company's robust international positioning and strong financial standing.
With virtually no debt and over $15 million in production facilities, MediPharm is positioned with a strategic advantage that the Board is keen to protect. Shareholders are urged to consider the risks of the dissident plan and support the current Board's nominees to ensure continued growth and stability.
