A publicly traded New Zealand cannabis company will likely be liquidated after going into receivership. Trading in shares of the company, Greenfern Industries, was halted on Monday, ahead of the announcement.
The company produces cannabis flowers, oils, and capsules under New Zealand’s medical cannabis program, and makes non-prescription CBD products for the wellness sector.
Waterstone Insolvency, Auckland, appointed as receivers and managers over Greenfern operations, said the company’s growth slowed as the medical cannabis space became crowded.
Australian dreams dashed
Having pinned its hopes primarily on the Australian market, Greenfern was hurt by the 2023 shutdown of a company there that manufactured its medicines, and a strategic shift by an Australian partner that was to acquire business for the New Zealand firm but never did.
The company lost NZ$1.5 million (US$853,000) in 2024 after losses of NZ$2 million (US$1.13 million) in 2023, according to its most recent annual report.
Greenfern announced the resignations of Board Chair Kirsten Taylor and CEO Elizabeth Plant just days ahead of going into receivership. Plant became CEO in late August, replacing Managing Director Dan Casey. Taylor had only chaired the company’s board since December 2024.
Powering down
Greenfern Industries failed despite having its own hydroelectric power station on the Waingongoro River in Taranaki on the North Island. The power station, adjacent to the company’s multi-purpose facility, had also provided the company with revenue from sales of surplus electricity it didn’t need and could therefore sell back to the grid. The company said reliability issues with aging hydropower equipment had been a problem.
Waterstone has said it is likely Greenfern assets will be sold off, and the company will not continue as a going concern.
Waterstone is also handling the insolvency of another NZ cannabis firm – the company behind Medical Kiwi, which also went into liquidation this month. Medical Kiwi was was a private company that raised funds through crowdfunding.
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