New Zealand's Greenfern Industries (GFI) has entered receivership, with its senior leadership team also having stepped down from their roles.
The company informed the New Zealand Stock Exchange that Waterstone Insolvency had been appointed to manage its affairs.
Waterstone's Damien Grant, quoted in The Post, indicated that a sale of Greenfern as a going concern was unlikely, with assets including a mini-hydro power station and research centre in Normanby expected to be offloaded individually.
"They simply struggled in a market that was not developing quickly enough," Grant is reported as saying.
The receivership announcement followed closely on the heels of the exits of chief executive Elizabeth Plant and director and acting chair Kirsten Taylor.
Plant, who had taken on the CEO position in August after Dan Casey's departure, spoke positively of Taylor and operations manager Mike Shea before leaving.
"Both Kirsten and Mike have gone over and above in providing their expertise to the company and I very much appreciate their support," she said. "I believe it is now time for someone else to take on this leadership role in order to move the company forward."
Receivers were appointed shortly after the two executives announced their exits.
In its 2024 annual report, released around the middle of last year and covering the period ending March 31, Greenfern described itself as maintaining its "resilience" and said it had achieved "progress in a number of areas during the period".
"Our financial performance remained in line for an industry startup and generally in line with our original expectations," it said.
The report also flagged difficulties in the Australian market, pointing to the winding down of its arrangement with Cannvalate "to the point that continued revenue from this relationship is unlikely".
"While our agreement with Cannvalate remains in place, they have continued to pivot in business model from a prescriber, doctor, and patient acquisition business to a Contract Research Organisation (CRO) in the medicinal cannabis and psychedelic research space," Greenfern said.
"In addition the Australian company that manufactured our GFI Pharma branded medicines entered into administration prior to Christmas 2023.
"While we have been working to explore and secure alternative relationships within the Australian market, this has not yet been successful and has meant we have had to reign back and re-evaluate our position and focus in this area. However, Australia and the Australian market remain a key focus for growth of our business moving forward."
Greenfern stated that receivers were appointed "pursuant to the powers granted under a General Security Agreement between GFI and Emdex Limited".
This stems from a six-month loan facility of NZ$200,000 that Emdex extended in December to "provide Greenfern with short-term funding to support its ongoing operations and strategic initiatives".
At that time, GFI said it "appreciates Emdex Limited's continued support and looks forward to utilising this facility to strengthen its position in the market".
On its website, GFI describes itself as an "entrepreneurial-led medicinal cannabis and biotechnology company that also has operations spanning into the industrial hemp, hemp food and body care space".
Its primary base of operations is a medicinal cannabis research facility and hemp processing hub in Normanby, South Taranaki, with "these facilities being powered by renewable energy generated by Greenfern's own hydroelectric power station located adjacent to the facility on the Waingongoro River".
