Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

New Zealand: Medical cannabis company enters into liquidation

Medicinal cannabis company Medical Kiwi Ltd is in liquidation, owing nearly $9 million. The Christchurch-based firm had had revenue and growth problems for the last two years and was placed in voluntary administration in November, citing "significant financial challenges".

No viable salvage strategy was presented at a creditors' meeting on Tuesday, and a resolution to liquidate passed without objection. The move was heavily foreshadowed, but now means liquidators Waterstone Insolvency can focus on recovery.

Of the $8.83m owed, the biggest liability is a $4.5m preferential security to Emichrome Proprietary Ltd ‒ the private family company of Malaysian-born Australian billionaire Kie Chi Wong.

Medical Kiwi, now known as Aether Pacific Pharmaceuticals (APP), also owes $2.3m in shareholder loans, nearly $1m to unsecured trade creditors, $176,000 to Inland Revenue and $63,000 to staff.

Read more at The Press

Publication date: