On our latest Trade To Black podcast, host Shadd Dales takes a closer look at the growing tension between MediPharm Labs (TSX: LABS) and one of its largest independent shareholders. Regan McGee, the CEO of Apollo Technology Capital Corporation, and John Fowler, industry veteran, join the show to break down their campaign to replace MediPharm’s current board. This episode is an important listen for anyone following cannabis stocks, board governance, and the state of Canadian cannabis companies.
MediPharm, once a star in the Canadian cannabis space, is now facing insolvency, having burned through nearly $60 million in operating losses under its current leadership. According to McGee, the top three executives have taken out more than $10 million in compensation—over a third of the company’s $30 million market cap—while shareholder value has evaporated by 99%.
Apollo, which holds nearly 3% of MediPharm’s shares, is pushing for major change after the company posted its 21st consecutive quarterly loss. With only $8.4 million in cash and over $3.3 million burned in Q1 alone, Apollo believes the company could run out of money by November 2025. They’re also pointing to declining revenues, especially in international and Canadian adult-use markets, and what they see as a lack of a realistic turnaround plan.
In response, Apollo has proposed replacing the current board with six new nominees, including cannabis and capital markets professionals. Their “5-Pillar Plan” focuses on restoring financial discipline, improving transparency, and protecting shareholder value. MediPharm has pushed back, questioning the dissident group’s approach and filing concerns over procedural issues. With the June 13 vote approaching, shareholders will soon decide whether change is needed—or whether to stay the course.
McGee and Fowler criticized MediPharm’s strategic blunders, such as the sale of a state-of-the-art cannabis facility to Rubicon for $4.5 million—despite valuations placing it closer to $15 million. They argued that the company lacks both a turnaround strategy and leadership with the right experience. Meanwhile, financial reporting has pivoted toward emphasizing “adjusted EBITDA”—a metric they both criticized as misleading.
With a shareholder vote set for June 13, McGee and Fowler laid out their proposed five-pillar turnaround plan focused on restoring trust, re-aligning management with shareholders, unlocking international revenue, preserving strategic assets, and improving financial discipline. Their goal? To get the share price back to over $1 within three years—with new capital and immediate cuts to SG&A expenses.
Hear their take in this episode.
