NZ cannabis firm placed into liquidation amid concerns over executives' high salaries

Source: 1News

Kiwi cannabis firm Medicann has been placed into liquidation less than a year after it was founded.

The first report from the liquidator said the company, which was founded in March last year, was voluntarily placed into liquidation in November by shareholders, The New Zealand Herald reports.

The company owed $43,171 to secured creditors and $3,325 to unsecured creditors, including a bill of $34,064 with Inland Revenue, according to liquidator Paul Manning from BDO.

Just under $3 million was put into the business by investors, a source told the NZ Herald.

Chairperson Dr Franz Strydom said disagreements between two of the three founders made his position difficult.

Founders Ross Smith, an industry investor, and businessman Brendon Ogilvy apparently feuded over how the business should be run.

Cannabis seed expert Luc Krol founded the company alongside Mr Smith and Mr Ogilvy.

Dr Strydom said he was also concerned about the high salaries executives had given themselves out of investor money.