Akanda Corp. (NASDAQ: AKAN) completed a 1‑for‑5 reverse stock split on January 12, 2026, consolidating roughly 10.1 million shares into about 2.0 million shares. The split, which was approved by shareholders on November 28, 2025 and by the board on December 23, 2025, will raise the share price while preserving the company’s market capitalization. A new CUSIP (00971M601) and ISIN (CA00971M6018) will be assigned to the post‑split shares, and all outstanding options, warrants and convertible securities will be adjusted proportionally.
The reverse split was driven by Akanda’s need to meet Nasdaq’s minimum bid‑price requirement of $1.00. The company’s share price had been below this threshold for an extended period, prompting regulatory scrutiny and the risk of delisting. By increasing the per‑share price, Akanda aims to restore compliance and maintain its Nasdaq listing, thereby preserving access to capital markets and investor confidence.
Akanda’s financial performance in the most recent reporting period underscores the urgency of the move. The company posted a net loss of $0.815 million for the half‑year ended June 30, 2025, a sharp improvement from a $2.68 million loss a year earlier, yet still indicative of ongoing cash burn. Revenue remains modest, with the cannabis segment generating the bulk of sales but operating at a loss, while the telecom infrastructure arm—particularly First Towers & Fiber Corp. in Mexico—shows growth potential but has yet to achieve profitability. The reverse split does not alter these underlying fundamentals but signals management’s intent to address liquidity concerns.
Management emphasized the strategic rationale behind the split. Interim CEO Katie Field stated, "We are taking immediate steps to address Nasdaq compliance and are focused on actions that will lead to regaining compliance with Nasdaq’s listing requirements. We appreciate the continued support of our investors during this period." The statement reflects a commitment to regulatory adherence while acknowledging the company’s broader challenges in achieving sustainable profitability.
The reverse split positions Akanda to avoid potential delisting and to improve the marketability of its shares. While the action does not change the company’s earnings trajectory, it is a critical step in maintaining its public listing status and may influence investor perception of Akanda’s stability. The company will continue to focus on cost control, revenue diversification across its cannabis and telecom segments, and strategic investments in Mexico’s tower expansion to strengthen its long‑term financial outlook.
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