MediPharm Labs (MEDIF) Gains Support from Proxy Advisory Firm | MEDIF Stock News

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Jun 13, 2025
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MediPharm Labs (MEDIF, Financial) has received a recommendation from Glass, Lewis & Co., an independent proxy and governance advisory firm, suggesting shareholders vote in favor of the company's Board nominees. This counsel pertains to the upcoming Annual and Special Meeting of Shareholders set for June 16. The endorsement from Glass Lewis follows a similar affirmative directive provided by another advisory entity, Institutional Shareholder Services, on May 30.

MEDIF Key Business Developments

Release Date: May 14, 2025

  • Revenue: Q1 2025 revenue of CAD 10.8 million, a 10.6% increase year-over-year.
  • International Medical Cannabis Revenue: Increased by 87% to CAD 5.9 million, representing 55% of total revenue.
  • Gross Profit: CAD 4.2 million, or 38.7% of revenue, the highest gross margin in many years.
  • Adjusted EBITDA: Positive CAD 141,000, an improvement from a CAD 949,000 loss in the prior year.
  • General and Administrative Expenses: Decreased by 29% year-over-year to CAD 3 million.
  • Total Operating Expenses: Decreased by 23% year-over-year to CAD 4.4 million.
  • Cash Balance: CAD 8.4 million at the end of Q1 2025.
  • Debt: Virtually no debt, with full ownership of three production facilities valued over CAD 20 million.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • MediPharm Labs Corp (MEDIF, Financial) achieved its highest gross margin in many years, with a Q1 2025 gross profit of 4.2 million CAD, or 38.7% of sales.
  • The company has successfully integrated the Vivo acquisition, which has expanded its international platform, particularly in Australia and Germany.
  • International sales now represent more than 50% of total revenues, with significant growth in markets like Germany, Australia, and the UK.
  • MediPharm Labs Corp (MEDIF) has a strong balance sheet with virtually no debt and full ownership of three production facilities valued over 20 million CAD.
  • The company has become EBITDA positive for the first time in over five years, indicating improved financial health and operational efficiency.

Negative Points

  • The Canadian adult-use and wellness revenue declined, as the company prioritized profitability over volume in a highly competitive market.
  • There is ongoing tension with a dissident shareholder, Apollo Technology Capital Corp, which has led to legal disputes and potential instability.
  • The share price has remained flat despite promises of better returns, reflecting broader challenges in the cannabis industry.
  • The sale of the Napanee facility fell through, although it is now being utilized for international business growth.
  • The company faces significant challenges in navigating the complexities of international cannabis markets, including regulatory and logistical issues.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.