Why Did Akanda (AKAN) Stock Go 7% Higher In Extended Trades On Friday?

Despite the lack of any pertinent news, Akanda Corp. (NASDAQ: AKAN) increased 7.20% to $0.268 in after-hours trade on Friday. The AKAN stock appeared to be regaining the -4.21% loss it had sustained to end the previous trading session at $0.25.

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What did AKAN do recently?

The Nasdaq Stock Market LLC’s Listing Qualifications Department sent a letter to Akanda (AKAN) on September 27, 2022 (the “Notification Letter”) (“Nasdaq”). The Notification Letter informed Akanda that it is in violation of the Nasdaq Listing Rule’s bid price requirement.

  • It happened as a consequence of the closing bid price of the common shares of AKAN with no par value (“Common Shares”) being below $1.00 for 30 straight working days.
  • At this moment, the Notification Letter has no effect on Akanda’s listing on the Nasdaq Capital Market.
  • The Company has 180 calendar days, or until March 27, 2023, to return to conformity with Nasdaq Listing Rule 5810(c)(3)(A), as stated in the rule.
  • Akanda’s common shares must have a closing bid price of at least $1.00 for a minimum of 10 straight business days in order to be in compliance.
  • If the company does not achieve compliance by March 27, 2023, it can be entitled for more time to do so or it might be delisted.
  • The receipt of the Notification Letter has no impact on how the Company conducts business.
  • The Company plans to keep an eye on the closing bid price of its common shares and, if necessary, may think about adopting available options, such as a reverse stock split, to get back in compliance with the Nasdaq Listing Rules’ minimum bid price requirement.

As it gets ready for its first export shipment from its Holigen facility in Portugal in the coming weeks, Akanda anticipates taking the lead in the rapidly expanding German medical cannabis market. The first purchase order has been received and the first export cargo to Germany is about to be made from AKAN’s EU GMP-certified indoor grow facility in Sintra.

How does the deal affect AKAN?

Recently, Akanda (AKAN) signed a contract to use the Cansativa platform to send 1,000 kg of premium medical cannabis flower to German pharmacies. Only Cansativa is authorized to sell cannabis that is cultivated here in Germany. In order to accept more quantities that could lead to the full capacity utilization of Holigen’s 2,000 kg per year indoor manufacturing capability, Cansativa will have the right of first refusal (ROFR). One of the biggest supply agreements in the European medical cannabis market is the one with AKAN.