MediPharm Labs Wins Dismissal of Defamation Suit, Spotlight on Shareholder Dispute

TORONTO, ON – November 14, 2025 – MediPharm Labs Corp. (LABS:TSX) announced today the complete dismissal of a defamation lawsuit filed against its CEO and Chairman, a victory stemming from a contentious shareholder dispute and proxy battle. The ruling, secured under Ontario’s anti-SLAPP legislation, sheds light on allegations of misconduct and questionable business practices leveled against a group led by Apollo Technology Capital Corp. and its CEO, Regan McGee.

The lawsuit, initiated by Apollo, Nobul Technologies Inc. (a subsidiary of Apollo), and McGee, stemmed from a letter sent by MediPharm executives regarding concerns about Apollo’s motives during a recent proxy contest. The court found the letter to be protected expression on a matter of public interest and that the plaintiffs failed to demonstrate sufficient grounds for the claims.

“This is a significant outcome for MediPharm Labs,” said an anonymous legal source close to the company. “It validates our position and demonstrates the strength of our legal arguments. More importantly, it allows us to refocus on building our business and serving our patients.”

Proxy Battle and Contentious Claims

The dismissal of the defamation suit is the latest chapter in a protracted dispute that began with Apollo’s attempt to replace MediPharm’s board of directors earlier this year. Apollo nominated a slate of alternative candidates, alleging mismanagement and a lack of transparency at MediPharm. In response, MediPharm raised serious concerns about Apollo’s nominees, specifically focusing on the track record of Regan McGee and Nobul Technologies.

MediPharm publicly questioned Nobul’s financial stability and highlighted allegations of impropriety, including prior litigation involving former directors and investors who accused McGee of misrepresenting the company’s revenue and misappropriating funds. These claims became central to the legal battle, with MediPharm arguing that Apollo’s motives were questionable and that McGee lacked the necessary experience to effectively lead a complex pharmaceutical company.

“There were genuine concerns raised about the conduct of certain individuals involved in the proxy contest,” said another anonymous source familiar with the matter. “MediPharm felt it had a responsibility to shareholders to highlight these concerns and to protect the company’s reputation.”

Apollo, however, countered that MediPharm’s accusations were defamatory and designed to undermine their credibility. They claimed that MediPharm was attempting to distract shareholders from their own shortcomings and to maintain control of the board.

The Role of Anti-SLAPP Legislation

The successful invocation of Ontario’s anti-SLAPP legislation – designed to protect free expression and discourage frivolous lawsuits – proved pivotal in the case. The legislation allows defendants to quickly dismiss lawsuits that aim to silence legitimate criticism or debate.

“Anti-SLAPP laws are crucial for protecting companies from being harassed by meritless lawsuits,” explained an independent legal expert. “They provide a mechanism for swiftly dismissing claims that are intended to stifle public discourse or to intimidate critics.”

The court found that MediPharm’s letter fell within the scope of protected expression, as it related to a matter of public interest – the proxy contest – and that Apollo failed to demonstrate a sufficient likelihood of success on its defamation claim.

Financial Performance and International Expansion

The legal battle unfolded against the backdrop of MediPharm’s ongoing efforts to expand its business and improve its financial performance. The company recently reported third-quarter revenue of CAD 11.4 million, a 17% year-over-year increase, driven largely by a surge in international medical cannabis revenue, which now accounts for 56% of total revenue.

MediPharm has been actively pursuing expansion in key international markets, including Australia, Germany, and the United Kingdom, and has secured licenses and partnerships that position it for continued growth. The company also announced strategic investments in research and development and in manufacturing capabilities, aimed at strengthening its position as a leading provider of cannabis-based pharmaceutical products.

Despite the positive revenue growth, MediPharm has faced challenges in achieving profitability, reporting a negative adjusted EBITDA of CAD 1.1 million in the third quarter. The company has emphasized its commitment to improving financial discipline and to driving sustainable, long-term growth.

Implications for the Cannabis Industry

The outcome of this case could have broader implications for the cannabis industry, which is often characterized by complex regulatory landscapes, volatile market conditions, and frequent shareholder disputes.

The successful application of anti-SLAPP legislation in this instance sends a message that companies will not be intimidated by frivolous lawsuits and that they have the right to defend themselves against baseless accusations. It may also encourage other companies in the industry to be more assertive in protecting their reputations and to challenge attempts to stifle legitimate debate.

“This case highlights the importance of transparency and accountability in the cannabis industry,” said a market analyst. “Companies need to be able to operate in a fair and open environment, free from the threat of harassment or intimidation.”

As MediPharm Labs moves forward, the company will likely focus on strengthening its financial position, expanding its international footprint, and continuing to innovate in the rapidly evolving cannabis market. The resolution of the defamation lawsuit provides a measure of stability and allows the company to focus on its long-term strategic objectives. However, the shadow of the shareholder dispute may continue to linger, reminding the industry of the challenges and complexities of operating in a highly regulated and competitive environment.