Medical cannabis company Akanda recently announced its IPO on the NASDAQ.
After filing for an IPO in January 2022, Akanda commenced trading of 4,000,000 common shares on 15 March. The company announced the pricing of its IPO at $4.00 per share for a total of $16m of gross proceeds, but saw a high of $31.00 and a low of $8.18, with its second day of trading reaching a high of $19.90.
Working to democratise access to medical cannabis for patients in the UK and Europe, with operations in Lesotho, Africa, Akanda will use the proceeds for property, plant and equipment, operations, working capital and general corporate purposes – building out operations on the ground in Lesotho.
Last year saw Akanda complete the acquisition of its largest shareholder Halo Collective‘s subsidiaries Bophelo Bio Science and CanMart – a UK-based licensed pharmaceutical importer and distributor supplying the country’s pharmacies – which will allow Akanda to reach international markets through multiple channels.
Speaking to Cannabis Wealth, Akanda CEO, Tej Virk, said that raising this vital growth capital will help take the business forward.
Virk commented: “It’s great for the patients, it’s great for the shareholders and it’s great for the community where we’re operating in Lesotho.
“The stock opened up at around $30, so with a $4 price, that is a six-fold increase. NASDAQ is a great listing venue. which offers us a lot of flexibility”
The proceeds will allow Akanda to invest further into its operations at Bophelo – building out cultivation infrastructure to bring its product to market.
Read more: Akanda CEO discusses ESG and disruption in European cannabis market
“People are our main asset,” said Virk. “This is already evidenced in what we’re seeing on the ground in Lesotho as one of the the poorest nations in Africa, where the area where we operated was previously subsistence farming and now we’ve now brought in mass growing operations – mass horticulture – and that’s really changing lives.
“We do pay 2.7 times the national wage and are affiliated with various trusts, including the Mophuthi Matsoso Development Trust, which is building schools and pharma development programmes, places of worship, and Akanda also founded a trust – the Akanda Bokamoso Empowerment Trust.
“That specifically contains 3 per cent of our equity from prior to the IPO which is specifically put to the good use of the communities where our employees are. So, there are lots of ways to give back.”
Virk says the IPO is going to help Akanda achieve its vision to create and connect the largest medical cannabis cultivation zone.
“I think ultimately, this is really going to help us achieve our mission which is to to heal the future from from the kingdom of Lesotho,” said Virk.
“We are going to focus on ESG and ethics and on our seed to patient model, where we’re focused on, “grow, move and heal”. We are cultivating the highest quality cannabis in Lesotho using ethical and sustainable practices. We are moving it to the markets with our owned and partner channels, and we are healing patients that are in need.
“That includes using our staff – we have hired one of the top prescribing medical cannabis doctors in the UK, Dr Sunny Nayee, as UK medical director, which will help us build relationships with the patients, with the clinics and really help to mainstream the use of medical cannabis.”
Halo – which has a 44 per cent stake in Akanda – congratulated the company on its successful first day of trading. Halo has agreed to enter into a lockup agreement with the company and lead underwriter Boustead Securities for a period of 270 days from the date of trading.
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