Proxy Fight

Apollo Capital warns MediPharm Labs (TSX: LABS) faces insolvency within six months, citing a $3.3M Q1 2025 cash burn (double 2024’s rate) and 21 consecutive quarterly losses. The activist shareholder alleges board mismanagement, claiming CEO David Pidduck’s optimistic statements contradict urgent financial collapse risks. Revenue fell 10% globally, with international markets down 18%, while executive stock compensation and unaddressed SG&A costs ($16.2M TTM) masked by “illusory” EBITDA spin exacerbate concerns. Apollo advocates leadership overhaul via shareholder vote, urging rejection of green-themed corporate proxy materials and supporting restructuring candidates with cannabis crisis expertise. Insolvency appears inevitable absent board replacement.