NEW YORK – Akanda Corp. (NASDAQ: AKAN), an international medical cannabis company, announced its plan to execute a reverse stock split of its ordinary shares at a ratio of 1-for-40, effective May 23, 2024.
The company's shares will continue trading on The Nasdaq Capital Market under the ticker symbol "AKAN" following the split.
This action is designed to affect all shareholders uniformly and will not change any shareholder's percentage interest in the company's outstanding shares, except for minor adjustments due to the treatment of fractional shares.
The decision for the reverse stock split was approved by Akanda's board of directors and its shareholders. The company will file the necessary Articles of Amendment with the Ontario Ministry of Government and Consumer Services to formalize the reverse stock split on the effective date.
Akanda's business focuses on the medical cannabis and wellness sectors, aiming to enhance life quality through access to high-quality and affordable products. Its portfolio includes CanMart, a UK-based pharmaceutical importer and distributor, and partnerships with digital pain clinics such as Cellen Life Sciences' Leva Clinic. Additionally, Akanda has secured rights to develop farming land and operations in British Columbia, Canada, for THC and CBD facilities.
The information for this article is based on a press release statement.
InvestingPro Insights
Akanda Corp. (NASDAQ: AKAN) is navigating challenging financial waters as evidenced by the key metrics and tips provided by InvestingPro. With a market capitalization of just 1.13 million USD, the company is considered quite small in the grand scheme of the stock market. The revenue for the last twelve months as of Q4 2023 stands at 2.16 million USD, which reflects a notable decrease of 17.55% from the previous period. This decline in revenue is further exacerbated by a gross profit margin of only 5.16%, highlighting the company's struggles in maintaining profitability.
InvestingPro Tips indicate that Akanda operates with a significant debt burden and is quickly burning through cash, which are concerning signs for investors. The company's stock has also experienced high price volatility, and it does not pay a dividend, potentially affecting investor confidence. Moreover, Akanda's short-term obligations exceed its liquid assets, signaling potential liquidity issues.
Though the company has seen a strong return over the last week and month with price total returns of 51.93% and 41.63% respectively, these short-term gains are set against a backdrop of significant long-term declines, including a 68.9% hit over the last six months and an 86.44% fall over the past year. Such volatility and downward trends may be a cause for concern for long-term investors.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics to help investors make informed decisions. To explore these further, visit https://www.investing.com/pro/AKAN and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This promo code unlocks access to a wealth of financial information, including 14 additional InvestingPro Tips for Akanda Corp., which can provide a more comprehensive understanding of the company's financial health and stock performance.
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