The company regained compliance with Nasdaq after filing its annual report with the Securities and Exchange Commission.
- Akanda operates in the Canadian cannabis sector and in Mexico’s telecom infrastructure industry through its unit.
- In April this year, the company effected a 1-for-4.5 reverse stock split, which reduced the number of outstanding common shares from about 2.4 million to over 534.000.
- In May, the company called off its special shareholder meeting because it was unable to meet the conditions for holding the meeting.
Shares of Akanda Corp. (AKAN) were in the spotlight on Friday after the company said that it has regained compliance with Nasdaq’s listing rules.
At the time of writing, AKAN stock was up 70% in premarket trading.
Akanda’s Listing Compliance Issue
According to the company, it did not file its annual report for fiscal year 2025 on Form 20-F, an SEC filing reserved for non-U.S. entities, on a timely basis, and it received a Nasdaq notice on May 20.
On June 9, the company filed the annual report with the SEC, and Nasdaq closed the noncompliance case the next day.
What Does Akanda Do?
Akanda is a dual-industry player, operating in the Canadian cannabis sector with its legacy business and in Mexico’s telecom infrastructure through its unit, First Towers & Fiber, which came under the company’s wing via a reverse merger.
However, short seller Fugazi Research said in May that Akanda is no longer in the weed business and is now fully invested in its telecom tower installation business. The firm cautioned investors that its strong double-digit percentage rallies in recent weeks are attributable to the optimism tied to DEA’s upcoming cannabis rescheduling hearing.
“We consider AKAN’s shares to be uninvestable and to have zero fundamental value,” the firm said at that time.
In April this year, the company effected a 1-for-4.5 reverse stock split, which reduced the number of outstanding common shares from about 2.4 million to over 534.000. In May, the company called off its special shareholder meeting because it was unable to meet the conditions for holding the meeting.
What Do Retail Traders Think About AKAN?
On Stocktwits, retail sentiment about the stock turned ‘neutral’ from ‘bearish’ over the past 24 hours. Many users on the platform cheered the news of listing compliance.
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AKAN stock has declined more than 75% over the past 12 months, underperforming the S&P 500.
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