Medical Kiwi fulfils Undertakings to FMA
Medical Kiwi Limited today confirmed it has fulfilled enforceable undertakings given to the Financial Markets Authority (FMA) last December.
The undertakings included an offer to refund the investment of any Medical Kiwi shareholder who joined through the company’s crowdfunding programme in 2020. Of those shareholders, 136 opted for a refund at the $1 per share entry price, and a total of $462,951 has now been returned to them by the Company.
In addition, Medical Kiwi has published a correction on misstatements that were made during the crowdfunding programme and the Company has paid the FMA $250,000 in lieu of a pecuniary penalty. Under another undertaking, Medical Kiwi has adopted an approved Disclosure Policy for governance around future statements made to investors.
In announcing the undertakings (21 December 2021), the Medical Kiwi Directors unreservedly apologised for the 2020 misstatements, made in relation to the status of the Company’s Medicinal Cannabis Licence at that time and to the non-binding nature of a cannabis sale agreement entered with Australia-based company Hektares. Medical Kiwi raised $2 million through crowdfunding on the PledgeMe platform.
Since the 2020 crowdfunding, Medical Kiwi has raised significant additional capital from wholesale investors, established a medicinal cannabis cultivation operation in Christchurch, and agreed terms for the export sale of significant quantities of dried cannabis flowers to an established buyer in Germany.
Executive Chair Aldo Miccio said Medical Kiwi had moved on a long way since 2020 in its business development and governance practices. “While we acknowledge the past misstatements and the importance of our undertakings last December, we face the future with confidence and with the capital needed to implement our business plan,” said Mr Miccio.
As an unlisted New Zealand public company, Medical Kiwi has 955 shareholders based in this country or overseas. The Company intends to continue growing its business as a producer and supplier of cannabis-based products and related services over the long term.
Note: Medical Kiwi will make no further public comment at this time.