LONDON–(BUSINESS WIRE)–Akanda Corp. (“Akanda” or the “Company”) today announced that it has closed a private placement for aggregate gross proceeds of $5,316,000. The Company intends to use the net proceeds of the private placement for working capital and general corporate purposes.
“This financing provides vital capital to accelerate our plans to build one of the leading international medical cannabis companies with a unique seed-to-patient business model,” said Tej Virk, CEO and Director of Akanda. “In the UK, we are building out our network of pharmacies, clinicians and other innovative channels as we seek to democratize access to medical cannabis for patients throughout the United Kingdom. In Lesotho, we are putting the finishing touches on a cultivation expansion project which is expected to be completed over the coming months. And we’re establishing a world class team. We also have plans to connect other elements of the international cannabis supply chain at an exciting time when, we believe, the European markets are showing increasingly promising indicators that positive regulatory change is coming.”
Boustead Securities, LLC served as exclusive placement agent for the Akanda private placement offering, and has accepted warrants as partial renumeration in addition to a cash fee.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state or other jurisdiction’s securities laws, and may not be resold absent registration under, or exemption from registration under, the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Akanda Corp.
Akanda is an international medical cannabis company cultivating cannabis of the highest quality at scale, leveraging trusted brands, at a low-cost compared to many of its competitors. Akanda’s initial portfolio includes Bophelo Bioscience & Wellness, a GACP certified cultivation and processing campus in the Kingdom of Lesotho in Southern Africa, and CanMart, a UK-based fully approved pharmaceutical importer and distributor which supplies pharmacies and clinics within the UK.
Bophelo operates a campus in the Kingdom of Lesotho focused on the cultivation and production of medical cannabis products for international export. Akanda believes Bophelo to be one of the largest licensed marijuana cultivation sites in the world with up to a maximum of 200 hectares of canopy. Through partnerships and licensing agreements with award-winning seed producers, including DNA Genetics, Bophelo provides Akanda with a low-cost gateway to the broader African continent and access to international markets. CanMart is one of a limited number of fully approved importers and distributors of medical cannabis products in the UK market with supply and distribution to pharmacies and clinics throughout the UK CanMart is committed to providing a range of the best possible cannabis-based medicinal products sourced from around the world.
A cornerstone of Akanda’s value system is its fundamental commitment to using its operations as a force for sustainability and social good. Akanda will seek to deliver on this promise by driving positive change in wellness, empowering individuals in Lesotho, and by uplifting the quality of the lives of employees and the local communities where it operates – while limiting its carbon footprint. Adhering to best practice ESG operating and disclosure standards is among Akanda’s highest priorities.
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.
Matt Chesler, CFA
Allison + Partners