Akanda subsidiary expands role in Mexico’s $7 billion telecom project

Published 01/10/2025, 13:14
Akanda subsidiary expands role in Mexico’s $7 billion telecom project

TORONTO - Akanda Corp. (NASDAQ:AKAN) announced Wednesday that its wholly-owned subsidiary First Towers & Fiber Corp. (FTF) is expanding its involvement in Mexico’s Red Compartida telecommunications infrastructure initiative.

The project, led by Altán Redes, aims to build a wholesale LTE/4G network (progressively 5G-ready) that will reach approximately 92.2% of Mexico’s population, serving over 100 million people including many rural and underserved areas.

According to the company’s press release, the total investment for the Red Compartida project is expected to exceed $7 billion over the concession period. For infrastructure deployment including cell towers and fiber-optic backbone, Altán Redes and the Mexican Federal Electricity Commission (CFE) have planned investments of approximately $1.7-1.8 billion.

The project has already resulted in the installation of over 11,383 telecommunications towers and delivered internet access to 82,178 localities with over 24 million people, particularly focusing on communities with 250 to 5,000 inhabitants.

FTF serves as a preferred contractor for Altán Redes in the project. The company operates a 700+ kilometer fiber optic network in Mexico and is looking to expand to other Latin American countries.

The Red Compartida initiative is structured as a public-private partnership with financial partners including Mexican infrastructure funds, Macquarie Investment Group, International Finance Corporation, Morgan Stanley, and private operators such as Axtel and Megacable.

Akanda Corp., primarily known for its cannabis operations in North America, acquired FTF as part of its diversification strategy. While the company’s stock has shown strong returns over the last month, InvestingPro analysis reveals several additional key metrics and insights about the company’s financial health. Subscribers can access 6 more exclusive ProTips and detailed financial analysis to make more informed investment decisions.

In other recent news, Akanda Corp. has successfully secured $12 million through a private placement involving convertible promissory notes with institutional investors. The company intends to use these funds for various initiatives, including up to $3.5 million for marketing, development of its Gabriola site in British Columbia, and up to $7 million for debt reduction. Additionally, Akanda will implement a 1-for-3.125 reverse stock split, effective August 26, 2025, which will reduce its outstanding common shares from approximately 2.27 million to about 728,000. This reverse split was approved by shareholders and the board earlier this year. These developments are part of Akanda’s ongoing efforts to optimize its financial and operational strategies.

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