A Christchurch medicinal cannabis company previously fined by a financial watchdog and admonished by its own auditor has been placed in voluntary administration.
Medical Kiwi Ltd, now known as Aether Pacific Pharmaceuticals, entered administration on Thursday. It employs around 15 people and its executive chair, Aldo Miccio, is a former mayor of Nelson. Christchurch City Councilor James Gough was among its directors until he stepped down last year.
The company, which touted itself as a "pioneering research and wellness company, creating and distributing medicinal and nutraceutical cannabis products" had endured revenue and growth problems for the last two years. In its annual report for the year to June 2022 its own auditor noted: "If the capital raise and revenue growth targets are not achieved in the short term, the going concern assumption may not be appropriate and therefore the company may be unable to realize its assets and discharge its liabilities in the normal course of business."
The current state of its finances is unclear (Neither Miccio or foundation director Peter Win immediately responded to requests for comment on Monday) but its draft annual report for 2022-23, obtained by The Press, showed it incurred a loss of $5.8 million and just $453,408 in sales that financial year. This followed a confirmed $7.8m loss in the 15 months to June 2022, which prompted the adverse auditor's report.
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