Akanda Receives Additional 180 Day Extension by Nasdaq to Regain Compliance with Minimum Bid Price Rule

Rhea-AI Summary

Akanda Corp. (NASDAQ: AKAN) received a 180-day extension from Nasdaq to regain compliance with the minimum $1.00 bid price requirement. The company now has until July 1, 2024, to achieve compliance. If not, the shares may be subject to delisting.

Insights

Market Research Analyst

The extension granted to Akanda Corp. by Nasdaq to meet the minimum bid price requirement is a crucial lifeline for the company. It allows additional time to implement strategies such as a reverse stock split to bolster the share price above the $1.00 threshold. This is a common tactic employed by public companies facing similar situations to avoid delisting. The success of such measures, however, is not guaranteed and can be viewed critically by investors as it artificially inflates the stock price without improving the underlying fundamentals of the company.

From a market research perspective, Akanda's ability to maintain its Nasdaq listing is essential for its visibility and credibility among institutional investors. The continued listing ensures access to a broader investment base, which can be critical for future capital raising efforts. However, the need for a reverse stock split could signal underlying financial or operational weaknesses that may concern investors evaluating the company's long-term value proposition.

Financial Analyst

Akanda Corp.'s situation requires a thorough financial analysis, particularly concerning its market value of publicly held shares. While the company meets the continued listing requirement for market value, the persistent issue with the bid price suggests a valuation challenge. Investors and analysts will closely monitor the company's stock performance in the upcoming months, especially the stock's ability to sustain a bid price of US$1.00 for at least 10 consecutive business days.

Financially, the implications of a potential delisting could be significant. Delisting typically leads to reduced liquidity and may limit access to capital markets, which can adversely affect the company's growth plans and investor confidence. Additionally, if the reverse stock split is executed, it will reduce the number of outstanding shares, potentially increasing volatility. Shareholders might be concerned about dilution of ownership and the perception of the company's stability.

Legal Expert

From a legal standpoint, the compliance with Nasdaq's Listing Rules is a regulatory issue that Akanda Corp. must navigate carefully. The extension for compliance indicates procedural adherence to Nasdaq's framework, which allows for such remediation periods. However, the potential of a reverse stock split to regain compliance introduces legal considerations, such as shareholder approval and amendments to the company's articles of incorporation.

The possibility of appealing a delisting decision to a Nasdaq Hearings Panel is a legal recourse that Akanda Corp. retains. This process involves presenting a plan to regain compliance and can be a complex legal undertaking. Should the company reach this stage, the outcome of such an appeal is uncertain and may not necessarily be favorable, but it does offer a procedural avenue to contest a delisting decision.

London, United Kingdom--(Newsfile Corp. - January 4, 2024) - International medical cannabis platform company Akanda Corp. (NASDAQ: AKAN) ("Akanda" or the "Company") an Ontario company, announced today it received an extension of 180 calendar days from The Nasdaq Stock Market LLC ("Nasdaq") to regain compliance with the Nasdaq's minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the "Bid Price Requirement"), following the expiration of the initial 180 calendar days period to regain compliance on January 2, 2024. The Nasdaq determination is based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market with the exception of the Bid Price Requirement, and the Company's written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

As a result of the extension, the Company now has until July 1, 2024, to regain compliance with the Bid Price Requirement. If at any time before July 1, 2024, the bid price of the Company's common shares closes at or above US$1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification to the Company that it has achieved compliance with the Bid Price Requirement. If the Company chooses to implement a reverse stock split to regain compliance, it must complete the reverse stock split no later than ten business days prior to the expiration of the additional 180 calendar day period in order to timely regain compliance.

If the Company does not regain compliance with the Bid Price Requirement by July 1, 2024, Nasdaq will provide written notification to the Company that its shares will be subject to delisting. At such time, the Company may appeal the delisting determination to a Nasdaq Hearings Panel. The Company would remain listed pending the Panel's decision. There can be no assurance that, if the Company does appeal a subsequent delisting determination, such appeal would be successful.

This current notification from Nasdaq has no immediate effect on the listing or trading of the Company's shares, which will continue to trade on The Nasdaq Capital Market under the symbol AKAN.

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 Holigen, a Portugal-based cultivator, manufacturer and distributor with a prized EU GMP certified indoor grow facility; 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 with California-based Cookies, the most globally recognized cannabis company in the world; Cansativa Group, a leading importer and distributor of medical cannabis in Europe; and Cellen Life Sciences' Leva Clinic, one of the first fully digital pain clinics in the UK.

Connect with Akanda: Email | Website | LinkedIn | Twitter | Instagram

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" 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". 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.

Investor Contact

ir@akandacorp.com

Media Contact

Imogen Saunders
Irvine Partners
imogen@irvinepartners.co.uk

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/193200

FAQ

What is the Nasdaq ticker symbol for Akanda Corp.?

The Nasdaq ticker symbol for Akanda Corp. is AKAN.

What extension did Akanda Corp. receive from Nasdaq?

Akanda Corp. received a 180-day extension from Nasdaq to regain compliance with the minimum $1.00 bid price requirement.

What is the deadline for Akanda Corp. to regain compliance with the bid price requirement?

Akanda Corp. has until July 1, 2024, to regain compliance with the bid price requirement.

What happens if Akanda Corp. does not regain compliance by July 1, 2024?

If Akanda Corp. does not regain compliance with the bid price requirement by July 1, 2024, Nasdaq will provide written notification that its shares may be subject to delisting.

Can Akanda Corp. appeal a delisting determination from Nasdaq?

If Akanda Corp. does appeal a subsequent delisting determination, there is no assurance that the appeal would be successful.