Christchurch medicinal cannabis company Medical Kiwi Ltd is facing liquidation, owing creditors nearly $9 million. The liabilities include $63,000 to staff in wages and holiday pay, $176,000 to Inland Revenue (IRD), and, crucially, a $4.5m preferential security to Emichrome Proprietary Ltd ‒ the private family company of Malaysian-born Australian billionaire Kie Chi Wong.
Medical Kiwi, also known as Aether Pacific Pharmaceuticals, entered voluntary administration on November 20 citing "significant financial challenges". It had endured revenue and growth problems for the last two years and its directors have faced claims of mismanagement by former staff.
As the majority secured creditor, Emichrome must support any proposal to restructure the company. It has indicated it will not, meaning the administrators will almost certainly recommend Medical Kiwi enters liquidation at a watershed meeting next month.
That would trigger a sale of assets including 500kg of cannabis of indeterminate quality and a suite of patents held by a subsidiary company, Hardie Health Ltd, already in liquidation.
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