Aether Pacific Pharmaceuticals, headquartered in Christchurch, has entered voluntary administration after encountering serious financial difficulties.
The company, which was previously known as Medical Kiwi and runs both a cultivation facility and a clinical network, brought in administrators late last week.
The full extent of the company's financial position is not yet clear, though The Press in New Zealand reported that Aether Pacific posted a loss of NZ$5.8 million (A$5.2m) in FY23 against sales of just $453,408 (A$407,504).
In an official statement, the company said the move followed a "review by the board of directors".
"This decision was made due to significant financial challenges, including difficulty collecting outstanding accounts receivable, a shortfall in funding from an investor, and delays caused by the ongoing impacts of the current financial climate," it said.
"Despite these challenges, the board and appointed administrators are confident that all staff wages can be met from funds owed to the company, and that a significant portion of creditor obligations can also be satisfied."
Aether said it has been approached by "several investors expressing interest in a Deed of Company Arrangement (DOCA), which may offer a viable pathway to restructure the business, secure ongoing operations, and protect jobs".
"The board and administrators are fully committed to working with creditors and investors to achieve the best possible outcome for all stakeholders, including employees and creditors," the statement added. "Further updates will be provided as the administration process progresses."
The company had established several distribution agreements in Australia for its flower range, having signed with Novachem in September 2023, with Alliance Healthcare Australia in November 2023, and previously with Medicann Health.
The Alliance agreement also included a memorandum of understanding (MoU) to establish a 50/50 joint venture pharmacy in New Zealand. The JV was intended to fill prescriptions generated through Aether's telehealth network and by doctors at its two physical clinics, known as The Pain Clinic, located in Nelson and Christchurch.
Following the Novachem agreement, Chairman Aldo Miccio said it came at a "critical time for the company's growth trajectory".
The firm, which was listed on New Zealand's Catalist public market, faced censure in late 2021 for making false and misleading statements about its licences and contractual arrangements during a 2020 crowdfunding campaign.
Earlier that same year, Aether, operating at the time as Medical Kiwi, was refused a listing on the NZX while an inquiry into the campaign was underway.
The stock exchange said at the time that the investigation was "one, but not the only factor in determining Medical Kiwi was not suitable for a direct listing at this time".
