Collapsed medicinal cannabis start-up Cannakiwi makes ‘no repayments’ on $300k Government loan
Friday, 20 March 2026
A medicinal cannabis company has been forced into liquidation, after it allegedly failed to make a single repayment on more than $350,000 it owed the Government.
Cannakiwi NZ was placed into liquidation on March 5, following an application by the Ministry of Business, Innovation and Employment (MBIE). Before Auckland-based liquidators KPMG were appointed, the firm was last registered to an office building on Winston Ave, Papanui, Christchurch.
According to court documents, Callaghan Innovation – a Government entity which previously granted research and development grants – loaned just over $314,000 to Cannakiwi in November 2020.
The cash was paid in a lump sum. Under the agreement, the company was supposed to begin monthly repayments of about $4488 after its first three years, which also covered interest. The loan was to be fully repaid within seven years.
But despite Callaghan providing written notice in December 2023 that the first payment was due, MBIE alleges none were ever made.
On March 25 last year, Callaghan wrote to Cannakiwi to declare the full amount was now outstanding – including almost $42,000 in interest.
But as of November, it said Cannakiwi still hadn’t paid up, or entered into any compromise to settle the debt.
Late last year, Callaghan Innovation was disestablished as part of wider science system reforms, and MBIE has assumed its powers and obligations – meaning the debt is now owed to it.
MBIE’s innovation and business capability head Diana Loughnan said they were continuing the legal proceedings against Cannakiwi initiated by Callaghan Innovation, due to Cannakiwi defaulting on its loans.
“We can confirm no repayments were made,” she said. “Typically, these R&D loans are due for repayments along with interest over 10 years.
“We acknowledge that sometimes these companies go into liquidation due to unforeseen circumstances and in some instances, legal proceedings have needed to be initiated.”
The Press contacted Cannakiwi’s directors for comment.
The company appeared to have very little online presence at the time of liquidation.
Cannakiwi had four directors listed; Jamie Campbell, Michael Chapman, John Phelan, and Jennifer Stewart. Stewart and Chapman were also named in court documents as having signed the original loan agreement with Callaghan.
Jamie Campbell had ties to a number of other New Zealand business ventures according to the Companies Office, including major North Island civil contractor CB Civil. Its website listed him as its founder and co-managing director, although it said he stepped down in 2024 “to begin a new chapter in Abu Dhabi”.
Another director, John Phelan, also had his address updated from Auckland to Dubai.
A Ministry of Health spokesperson confirmed Cannakiwi NZ held a licence to cultivate medicinal cannabis from July 2020 to July 2025, “after which point they did not renew their licence”.
This isn’t the first medicinal cannabis company to go into liquidation in recent months. Christchurch-based firm Medical Kiwi was placed in voluntary administration in November.
It was formally placed into liquidation earlier this month, owing nearly $9 million to creditors.
NZ Medicinal Cannabis Council deputy chair Tim Aldridge, also the chief executive of Puro New Zealand – one of the country’s largest growers – had never heard of Cannakiwi.
But he said many start-ups in the industry struggled to become established.
“Selling the cannabis is what has caused a lot of most companies to fail. The main reason for that is the way the regulations are set here in New Zealand… it’s very, very, very difficult to get your products to market, even if they are the best products in the world.
“The smaller growers don't have those resources. It's just a real challenge for them. It’s just a really unfortunate environment, and the regulations are just not conducive to allow small growers and small companies to operate.”