New Zealand’s medical cannabis industry is facing a major shakeup. Two key players—Greenfern Industries and Cannasouth—have collapsed into insolvency. This has shocked creditors, shareholders, and hopeful investors. Meanwhile, Helious Therapeutics and Aqualis are still operating—at least for now.

Greenfern Industries: Burned Out at $10.5 Million

Greenfern Industries entered receivership in February 2024 after it failed to meet payment obligations. Debt funder Emdex Ltd forced the process. Greenfern owes $1.2 million to creditors, and more claims are expected. The company also lost $10.5 million of shareholder capital.

In the year ending March 2024, Greenfern made only $300,000 in revenue. This was a 40% drop from the year before. The company reported a net loss of $1.5 million, down from $2 million previously. However, Greenfern’s future depended on raising more funds and extending debt. Those plans never fully came through.

Cannasouth: From NZX Darling to Private Purgatory

Cannasouth entered voluntary administration in March 2024 after it failed to secure new investment. It was New Zealand’s first publicly listed medicinal cannabis firm. But it couldn’t avoid its cash crunch and losses.

The NZX delisted Cannasouth in December 2024. The company breached rules by not paying fees, failing board compliance, and missing audited financial reports. After delisting, Cannasouth became a private company under a Deed of Company Arrangement (DOCA).

Interim CEO David Petterson cut costs aggressively. He reduced the cash burn from around $650,000 per month by half. However, Cannasouth Bioscience Ltd, a subsidiary, was liquidated. This left creditors with an estimated $15 million loss—mostly owed to Cannasouth itself.

Now, Cannasouth focuses on manufacturing and aims to reach positive cash flow by 2025.

Helious and Aqualis: The Last Leaves Standing

Amid this turmoil, Helious Therapeutics and Aqualis remain active. Both continue to produce and distribute medicinal cannabis. They face regulatory challenges and market pressures but are still in business.

A Harsh Wake-Up Call for NZ’s Green Economy

The collapse of Greenfern and Cannasouth sends a strong warning. Legalisation alone does not guarantee business success. Overspending and slow returns sank two pioneers. Investors now watch carefully as New Zealand’s cannabis industry fights to survive.

Will Helious and Aqualis stay afloat—or will they be next? Only time will tell.

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