MediPharm Labs (MEDIF, Financial) conducted its annual and special meeting where crucial decisions were voted on by shareholders. A total of 146 shareholders took part either online or by proxy, representing 210,726,733 common shares, which equates to 50.76% of the company's total common shares as of the record date.
During this virtual meeting, all resolutions were determined through a ballot process. Shareholders agreed to maintain the board of directors at seven members and appointed MNP LLP as the company's auditors. Furthermore, all seven director nominees proposed by management were elected, and the shareholders endorsed the resolution related to unallocated awards in the company's equity incentive plan.
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.
