A medicinal cannabis company led by a former Nelson mayor has entered voluntary administration.
Aether Pacific Pharmaceuticals, formerly Medical Kiwi Ltd, was co-founded by Aldo Miccio, Nelson’s mayor from 2010 to 2013. Established in 2018, the company originally positioned itself as a leader in medicinal cannabis research and production, touting significant economic benefits for the Nelson-Tasman region and New Zealand.
The company had bold plans to build the South Island’s first large-scale medicinal cannabis facility in Brightwater. Miccio announced in 2019 that the site would eventually process 30 tonnes of raw cannabis annually, create 245 jobs, and inject economic growth into the region.
"The demand globally far exceeds the supply," he said at the time, comparing the cannabis market to New Zealand’s wine industry.
Medical Kiwi secured a cultivation licence from the Ministry of Health to begin research and development and raised $1 million in its early days, seeking to attract an additional $15 million in shareholder investment. However, these ambitious goals never fully materialised.
By 2022, the company faced mounting financial struggles. The Press reported this week that its auditor flagged concerns about the viability of the business if capital-raising and revenue growth targets were not met and that financial reports showed a $7.8m loss in the 15 months to June 2022, followed by another $5.8m loss in the 2022-23 financial year, with just $453,408 in sales.
The company has also faced regulatory troubles. In 2021, it was fined $250,000 by the Financial Markets Authority for misleading claims during a crowdfunding campaign, including overstating its licensing status.
