MediPharm Labs Corp. (LABS) Earnings Call Transcript & Summary

Welcome to the 2024 Annual Meeting of Shareholders of MediPharm Labs Corp. Please note that the meeting is being recorded. I would like to introduce David Pidduck, Chair of today's meeting. Mr. Pidduck, the floor is yours.

Thank you. Good morning. It is now 11:00 a.m. My name is Dave -- David Pidduck, CEO of MediPharm. I will act as Chair of today's meeting. On behalf of the Board and management, of whom Keith Strachan, Co-Founder and President; and Greg Hunter, Chief Financial Officer, are also in attendance today. I am pleased to welcome you to the Annual Meeting of Shareholders of MediPharm Labs Corp. We are pleased to host the meeting through this virtual meeting platform, accessible to all of our shareholders regardless of physical location. Following the formal portion of today's meeting, management will be making brief closing remarks. As this meeting is being held online via live webcast, it is appropriate to set out a few guidelines for online participants for the orderly conduct of this meeting. Questions can only be submitted by registered shareholders and duly appointed proxy holders entitled to attend and vote at the meeting. Questions may be submitted by selecting the Ask a Question button on the left side of your screen. Questions submitted in respective motions, if any, will be addressed prior to the close of voting. Questions with respect to MediPharm Labs generally will be answered after the completion of management's closing remarks following the formal business. For the purposes of the meeting today, voting on all matters will be conducted by online ballot through the facilities of this webcast. If you are a registered shareholder or a duly appointed proxy holder, who has logged in with a valid control number, you will be able to vote at today's meeting. With respect to voting, once polls are announced open, please click on the voting button on the left side of your screen to cast your votes. You will only have a certain amount of time to do so when the polls are open. If you have already voted by depositing a proxy or voting instruction form prior to the proxy cutoff time, there is no need to vote again, unless you want to change your vote. By voting again, you will be revoking your previous vote. I would now like to call the meeting to order. With the consent of the meeting, I hereby appoint Amy Marcen-Gaudaur of Aird & Berlis LLP to act as Secretary of the meeting and Lori Winchester of TSX Trust Company to act as the Scrutineer of the meeting. The notice calling this meeting was delivered to all shareholders of record as of the close of business on May 10, 2024, being the record date for this meeting. I have received proof of service of such notice and ask that a copy of the notice and proof of service be annexed to the minutes of this meeting as a schedule. As a reminder, only registered shareholders, who held shares in their name as of the record date or their validly appointed proxy holders, are entitled to vote at this meeting. I have been advised by the Scrutineer that a quorum of shareholders for transaction of business is present. The Scrutineers' report on attendance will be provided to the Secretary of the meeting and incorporated into the minutes. I now declare that the meeting is regularly called and properly constituted for the transaction of business. So to the formal matters, we will now commence the formal business of the meeting. The business of the meeting is described in the company's management information circular dated May 15, 2024, which accompany the notice of meeting and is available on SEDAR+. The notice, management information circular and the form of proxy related to this meeting were mailed to shareholders in accordance with applicable law. The company has received confirmation of mailing from TSX Trust Company, which I ask the Secretary to append the minutes of this meeting. May I have a motion to dispense with the reading of the notice of this meeting and to take the notice as read?

I move that the reading of the notice of meeting be dispensed with and that the notice be taken as read.

I second the motion.

I declare the motion carried. We will conduct voting on the matters before us by poll. On a poll, every shareholder, as of the record date entitled to vote on the matter, has one vote in respect of each share entitled to be voted on the matter and held by that shareholder. The poll will be open for all resolutions at the same time. I now instruct the Scrutineer to open the polls. This will allow you to choose to vote on each resolution immediately or wait until the conclusion of discussion on all resolutions prior to casting your vote. If you have already voted by depositing a proxy or voting instruction form prior to the proxy cutoff time, there is no need to vote again, unless you want to change your book. We will run through each of the items on the agenda in turn. Once discussion on all items of business has concluded, I will give you time to cast your votes and then declare voting closed on all resolutions. The results of the meeting will be publicly released and will be available on our website following the meeting. Financial statements. The first item of business is the tabling of the audited financial statements of the company for the financial year ended December 31, 2023, and the auditor's report thereon, which I have asked to be done. Shareholders are not required to approve the financial statements. You can obtain a copy of the financial statements and auditor's report on our website and on SEDAR+. The next item of business is the election of directors. Only persons nominated in accordance with the procedures set out in the company's bylaws are eligible for election as directors. The management information circular of the company dated May 15, 2024 sets out the names of management's 5 nominees for election to the Board. No other nominations for election to the Board were duly received. Therefore, pursuant to the company's advanced notice bylaw, nominations from the floor of the meeting, other than for management's nominees will not be accepted. As set forth in the management information circular, the company has adopted a majority voting policy for directors, which provides that if a director receives more withheld votes than 4 votes at the meeting, the director shall submit the resignation to the Board for consideration immediately following the meeting. The individuals nominated for election as directors are the following named nominees: Chris Halyk, Shelley Potts, Chris Taves, David Pidduck, Michael Bumby. I declare the nominations closed.

I move that each of the persons nominated for election as directors of the company be elected to hold office for the ensuing year or until their successors are elected or appointed.

I second the motion.

Are there any questions submitted from any registered shareholder or proxy holder? And we check if there are no further questions, please cast your votes. If you already voted prior to the meeting, there is no need to vote again, unless you want to change your votes. [Voting]

The next item of business is the appointment of MNP LLP, the current auditor of the company, as auditor to hold office until the next Annual Meeting of Shareholders. May I have a motion?

I move that MNP LLP be appointed as auditor of the company to hold office until the close of the next Annual General Meeting of Shareholders and that the directors be authorized to fix the auditor's remuneration.

I second the motion.

Are there any questions submitted from any registered shareholder or proxy holder? If there's no further questions, please cast your votes. If you already voted prior to the meeting, there is no need to vote again, unless you want to change your vote. For those who have not voted on all of the resolutions placed before this meeting, please do so now as the polls on the resolution will be closing momentarily. [Voting]

Okay. The polls are now closed. Based on the preliminary Scrutineers' report, I declare that approximately 15% of the issued and outstanding -- sorry, 15% of the issued and outstanding common shares were voted in the election of the directors. Pursuant to the company's majority voting policy, greater than 50% of those votes were cast in favor of each of the management's nominees. As such, I declare that each nominee for election as director is elected as a Director of MediPharm Labs, to hold office for the ensuing year or until his or her successor is elected or appointed. And I declare each of the other motions carried and resolutions passed. This then concludes the formal business portion of the meeting. Unless there are any questions from the floor, may I have a motion for termination of the business portion of this meeting.

I move that the meeting be terminated.

I second the motion.

I declare this meeting is terminated. Now as CEO, I'll make just a few brief closing remarks on behalf of management. We've had several positive developments in the first half of this year, in addition to our strong financial results. I draw shareholders' attention to the recent announcement by MediPharm Labs regarding Remidose. We are excited about the addition of the Remidose line of doseable, nonsmokable metered dose inhalers and sprays. We look forward to adding these new formats to our portfolio and providing them to international markets through our existing sales and distribution channels. Recently, we have seen very successful market adoption with the launch of dronabinol, pharmaceutical API into the German market. APIs, or active pharmaceutical ingredients, have stringent quality and regulatory approval requirements, which NPL is well positioned to address products like dronabinol, while having longer development lead times, enjoy higher margins and are difficult to replicate. Finally, we continue to see positive trends in the Australian market with the launch of our Beacon branded vapes and oils. The recent tighter GMP requirements for the Australian market are good sales catalyst for GMP suppliers like MediPharm Labs. We look forward to discussing these and other initiatives in more detail at our Q2 earnings call in August. Thank you all for your continued support for and investment in the company, and have a great summer.

Thank you for attending today's meeting. You may now disconnect.