Akanda Corporation Announces Completion of F-3 Shelf Registration Statement
Akanda (NASDAQ: AKAN), a global medical cannabis company, completed the sale of securities under its Form F-3 shelf registration statement, raising approximately $4.98 million in gross proceeds. The shelf registration had a capacity of $5 million and was effective from January 29, 2024. Interim CEO Katie Field stated that Akanda has now fully utilized the registration's capacity and will need to file a new registration for any future offerings. The securities were sold through a previously filed Form S-3 with the SEC.
- Raised approximately $4.98 million in gross proceeds.
- Successfully utilized the entire $5 million capacity of the F-3 shelf registration.
- Interim CEO Katie Field provided transparency regarding future fundraising plans.
- Will need to file a new registration statement for any future fundraising.
- The company has not provided details on how the raised funds will be used, which could raise investor concerns about capital allocation efficiency.
Insights
The completion of Akanda Corp.'s $5 million Form F-3 shelf registration statement and the subsequent raising of approximately $4.98 million in gross proceeds is a significant financial maneuver. This action highlights the company's ability to leverage public markets to obtain necessary funding. It should be noted that these funds are gross proceeds, meaning deductions for underwriting fees, legal and other expenses will reduce the net amount available to the company.
Short-term implications: This infusion of capital is a boost for Akanda, providing them with liquidity that can be used for various purposes such as expanding operations, research and development, or managing debt. Investors may view this as a sign of the company's proactive steps to ensure financial stability.
Long-term implications: However, the need to raise funds through a shelf registration indicates that Akanda might not be generating sufficient cash flow from its operations. This reliance on external funding can be a red flag, potentially signaling operational challenges or slower-than-expected growth. Furthermore, future fundraising efforts will require a new registration statement, implying more administrative overhead and possible dilution of existing shares.
It's important to understand that while the immediate liquidity is beneficial, the long-term sustainability of the company relies heavily on its ability to improve operational efficiency and generate organic cash flow.
In the context of an international medical cannabis company, the completion of this shelf registration is a noteworthy development. The ability to raise nearly the full $5 million capacity suggests there is investor confidence in Akanda's business model and market potential. This does provide a vote of confidence from the market about the company’s prospects.
Market Dynamics: The medical cannabis industry has seen substantial growth and evolving regulations globally. Akanda's ability to tap into the capital markets demonstrates investor faith in the potential of the sector and the company's strategy. However, investors should closely monitor how Akanda intends to deploy this capital. Effective use of these funds in expanding market reach, securing supply chains, or developing new products will be critical.
Additionally, the timing of these offerings might reflect Akanda's viewpoint on market valuations and investor sentiment. If the company anticipates future financial needs, understanding the broader market conditions and how they align with the company’s growth strategy is essential.
London, United Kingdom--(Newsfile Corp. - June 14, 2024) - Akanda Corp. (NASDAQ: AKAN) ("Akanda" or the "Company"), an international medical cannabis company, today announced that it has successfully completed sales of its securities under its existing Form F-3 shelf registration. The shelf registration statement had a
The Interim CEO Katie Field commented, "Akanda has used all of the capacity, essentially maxing out the amount we can raise on our F-3 shelf. We will not raise further funds on this registration statement. Any future registered direct offering will need to be pursuant to a newly filed and effective registration statement which the Company will file in due course."
The securities were sold pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (SEC) and declared effective on January 29, 2024 and is available on the SEC's website located at http://www.sec.gov.
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/212920
FAQ
What is the significance of Akanda's completion of the F-3 shelf registration?
When was Akanda's F-3 shelf registration statement declared effective?
How much did Akanda raise through its F-3 shelf registration?
What will Akanda need to do for future fundraising?
Where can one find Akanda's Form S-3 shelf registration statement?
