New Zealand-based Greenfern Industries (GFI) has been placed into receivership and seen the departure of its senior leadership team.
The company told the New Zealand Stock Exchange that Waterstone Insolvency has been appointed to handle the affairs of the business.
Waterstone’s Damien Grant, quoted in The Post, said it was unlikely Greenfern would be sold as a going concern with its assets, including a mini-hydro power station and research centre in Normanby, likely to be sold.
“They simply struggled in a market that was not developing quickly enough,” Grant is reported as saying.
News of the receivership came shortly after the departure of chief executive Elizabeth Plant and director and stand-in chair Kirsten Taylor.
Plant, who stepped into the CEO role in August following the departure of Dan Casey, praised Taylor and operations manager Mike Shea for their efforts.
“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.”
Soon after the announcement of their exits, receivers were appointed.
In its 2024 annual report, published mid last year for the year ending March 31, Greenfern said it was maintaining its “resilience” and 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.
However, it warned of a struggle in the Australian market with the winding down of an agreement 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 said the appointment of receivers was “pursuant to the powers granted under a General Security Agreement between GFI and Emdex Limited”.
That relates to a six-month loan facility of NZ$200,000 provided by Emdex in December to “provide Greenfern with short-term funding to support its ongoing operations and strategic initiatives”.
At the 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”.
It operates primarily from their 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”.
