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TORONTO - Akanda Corp. (NASDAQ: AKAN), an international cannabis company, announced today a strategic shift in its business operations alongside a significant acquisition. The company has entered into a Share Exchange Agreement with First Towers & Fiber Corp., a telecommunications infrastructure firm based in British Columbia. This move will see Akanda acquiring First Towers in a transaction that will result in First Towers becoming a wholly owned subsidiary of Akanda.
Upon completion of the transaction, Akanda’s common shares will continue to be listed on the Nasdaq Capital Market under the ticker AKAN. The deal stipulates that First Towers shareholders will receive approximately 15.3 million Akanda shares or an aggregate cash consideration of about US$14.1 million, payable 18 months post-closing. Akanda will also assume certain First Towers debts and outstanding options. InvestingPro data suggests the stock is currently undervalued, with additional analysis showing the company’s overall financial health score at 1.64, rated as ’WEAK’. Get access to 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro.
The telecommunications company First Towers, which operates in Mexico, owns over 700km of 5G dark fiber network and has deployed 24 towers with an additional six under construction. It holds 20-year master lease agreements for tower development and fiber network operations, aiming to expand its services to other Latin American countries.
This acquisition marks Akanda’s withdrawal from its UK operations, specifically the importing and distribution of cannabis-based products through its Canmart Ltd. subsidiary. The decision follows the directors’ intention to resign and the cost-ineffectiveness of renewing its UK license against projected revenues. Additionally, Akanda will focus on developing THC and CBD facilities at its pre-revenue Canadian farming property in British Columbia, though no cultivation has occurred to date.
Investors and stockholders are advised to read the forthcoming Form F-4 registration statement, which will include a prospectus and potentially a proxy statement for the transaction, to be filed with the U.S. Securities and Exchange Commission (SEC). These documents will contain important information about the transaction, and once available, can be obtained free of charge at the SEC’s website or from Akanda directly.
This press release contains forward-looking statements, including anticipated benefits of the transaction and future plans for expansion. These statements are based on current expectations and are subject to risks and uncertainties that may cause actual results to differ materially. The information in this article is based on a press release statement. Investors should note that Akanda’s stock has shown significant volatility, with a 52-week range of $1.22 to $47.52, and a negative EBITDA of -$7.46 million in the last twelve months.
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