LONDON - Akanda Corp. (NASDAQ: AKAN), an international medical cannabis company, has announced a temporary halt to potential equity financings for thirty days. The decision comes as the company seeks to evaluate and pursue strategic investments in international cannabis markets and ancillary technology services.
The company, which has completed public offerings totaling approximately $6 million since February 1, 2024, is taking this pause to allow its Board to meet and discuss future opportunities. With the recent sale of its Portuguese subsidiary RPK BioPharma Unipessoal, LDA, Akanda has eliminated approximately $4 million of debt and received net cash proceeds of $1,553,750.
Interim CEO and Director Katie Field stated that Akanda is working to position itself to take advantage of strategic opportunities. The company plans to review possible acquisitions in the international cannabis and technology sectors, with a focus on evaluating each opportunity based on its current operations and potential for future growth.
Field emphasized the importance of a cautious approach, indicating that Akanda will not invest in future subsidiaries that increase the company's burn rate and will be thoughtful about future additions to the company.
Akanda's portfolio includes CanMart, a UK-based pharmaceutical importer and distributor, and partnerships with Cellen Life Sciences' Leva Clinic, a digital pain clinic in the UK. Additionally, Akanda has acquired the right to develop a farming property in British Columbia, Canada, where it plans to develop THC and cannabinoid (CBD) facilities.
The information in this article is based on a press release statement from Akanda Corp.
InvestingPro Insights
Akanda Corp. (NASDAQ: AKAN) is navigating a challenging financial landscape, as indicated by InvestingPro data. The company's market capitalization stands at a modest $1.31 million, reflecting the small scale of its operations in the competitive cannabis industry. Despite a tremendous revenue growth reported over the last twelve months as of Q2 2023, at 3466.29%, Akanda's financial health is under scrutiny due to significant operating losses, with an operating income margin of -382.34% for the same period.
The InvestingPro Tips for Akanda highlight several concerns for potential investors. The company is dealing with a significant debt burden and may face difficulties in making interest payments on its debt. Furthermore, the stock has experienced high price volatility, with price movements indicating a steep decline over various timeframes. Notably, the 1-month price total return as of Day 106 of 2024 shows a drop of -29.35%, and the 1-year price total return reveals an even more dramatic fall of -88.98%, underscoring the stock's poor performance.
Investors interested in a deeper analysis might find the additional 15 InvestingPro Tips available for Akanda Corp. invaluable, which can be accessed at https://www.investing.com/pro/AKAN. These tips provide a more comprehensive picture of the company's financial state and market performance. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching your investment strategy with expert insights.
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