Akanda Corp. Receives Notice of Non-Compliance from NASDAQ
Akanda Corp. (NASDAQ: AKAN) received a deficiency notification from Nasdaq on May 14, 2024, for not meeting the minimum stockholders' equity requirement of $2.5 million.
As per their Form 20-F for the fiscal year ending December 31, 2023, Akanda's stockholders' equity was reported at ($3,828,892).
The company has until June 28, 2024, to submit a compliance plan. If accepted, Nasdaq may grant an extension of up to 180 days. Akanda plans to submit a comprehensive plan within this timeframe.
Meanwhile, their Nasdaq listing remains unaffected, and shares continue to trade under the symbol 'AKAN'.
Katie Field, interim CEO, affirmed that immediate steps are being taken to address the issue and regain compliance.
- Akanda has 45 days to submit a compliance plan, potentially gaining up to 180 days for resolution.
- The company's shares will continue to trade on Nasdaq despite the notice.
- Interim CEO Katie Field expressed a proactive approach to resolving the issue.
- Akanda's stockholders' equity is reported at a deficit of $3,828,892.
- Failure to meet the minimum stockholders' equity requirement of $2.5 million.
- The company does not meet alternative compliance standards based on market value or net income.
- Potential risk of delisting if compliance is not achieved.
Akanda Corp. has received a deficiency notification from Nasdaq due to non-compliance with the minimum stockholders' equity requirement of
From a financial perspective, this situation is alarming. The company has a grace period of 45 calendar days to submit a compliance plan and possibly an additional 180 days if Nasdaq accepts its plan. Investors should closely monitor how Akanda addresses this issue. Potential strategies could include equity infusions, cost-cutting measures, or asset sales to boost stockholders' equity. However, such measures often come with their own risks and uncertainties.
Given the significant gap in equity, there could be considerable volatility in Akanda's stock price in the short term. Long-term investors should weigh the company's ability to execute its compliance plan effectively against its current financial instability.
Conclusion: This news carries a negative short-term impact, reflecting poorly on the company's financial health and leading to uncertainty.
Market sentiment towards Akanda Corp. is likely to be negatively impacted by the notification of non-compliance. Retail investors and institutional investors closely follow Nasdaq listing requirements as a benchmark for company stability and credibility. The notice could lead to a sell-off, increasing stock price volatility.
Akanda's ability to regain compliance will largely depend on its strategic plan and market response. If the company can present a convincing plan and demonstrate tangible progress, this could mitigate some of the negative sentiment. However, if the market perceives the plan as insufficient or the company fails to meet the milestones, it could result in further negative pressure on the stock price.
Conclusion: The market reaction is anticipated to be adverse in the short term. Investors should be cautious and look for updates on the company’s compliance efforts.
London, United Kingdom--(Newsfile Corp. - May 16, 2024) - Akanda Corp. (NASDAQ: AKAN) ("Akanda" or the "Company"), announced that it has received a deficiency notification letter from the Nasdaq Listing Qualifications Department on May 14, 2024, due to non-compliance with the minimum stockholders' equity requirement as set forth in Nasdaq Listing Rule 5550(b)(1).
According to Nasdaq's listing requirements, companies must maintain a minimum stockholders' equity of
Under Nasdaq rules, Akanda has 45 calendar days, or until June 28, 2024, to submit a plan to regain compliance. If Nasdaq accepts the Company's plan, Akanda may be granted an extension of up to 180 days from the date of the notification letter to evidence compliance.
Akanda is currently evaluating its options to resolve the deficiency and intends to submit a comprehensive plan to regain compliance within the stipulated timeframe. The Company will provide updates on its progress as appropriate.
This announcement does not impact Akanda's listing on Nasdaq at this time, and its common shares will continue to trade on the Nasdaq Capital Market under the symbol "AKAN".
Katie Field, Interim Chief Executive Officer of Akanda, commented, "We are taking immediate steps to address this matter and are focused on actions that will lead to regaining compliance with Nasdaq's listing requirements. We appreciate the continued support of our investors during this period."
This disclosure is being made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt public disclosure of receipt of a deficiency notification.
About Akanda Corp.
Akanda is an international medical cannabis and wellness platform company seeking to help people lead better lives through improved access to high quality and affordable products. Akanda's portfolio includes CanMart, a UK-based fully licensed pharmaceutical importer and distributor which supplies pharmacies and clinics within the UK. The Company's seed-to-patient supply chain also includes partnerships Cellen Life Sciences' Leva Clinic, one of the first fully digital pain clinics in the UK. Akanda also acquired the right to develop a Canadian farming property in British Columbia, including farming land and related operations and licenses. The Company plans to develop THC and cannabinoid (CBD) facilities at this site.
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Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Akanda's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Akanda's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved" and similar expressions and include statements regarding the timing and completion of the proposed offering. Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, product development and sales and growth plans. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Akanda does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209532
FAQ
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