Akanda
Akanda Corp has become the latest listed cannabis company to announce its (partial) exit from the industry as it pivots from medical cannabis cultivation in Europe to telecommunications in South America.
After selling its Portuguese cultivation facility to Somai Pharmaceuticals last February, Akanda has now announced plans to ‘discontinue and cease’ its last remaining cannabis-based revenue generator, UK-based Canmart.
While it has ‘reaffirmed its commitment’ to its pre-revenue investment in farming land in British Columbia, Canada, on which it plans to develop THC and CBD facilities, this marks a near wholesale shift away from the industry.
It follows around two years of treading water for the company, which has seen its output and financial activity dwindle since 2022 when it lost its operations in Lesotho following a bitter legal dispute with a local director.
In July 2022, Business of Cannabis reported that Akanda’s wholly owned subsidiary in the Southern African country had been placed into liquidation by its former Executive Chairman Louisa Mojela and the Mophuti Matsoso Development Trust (MMD Trust), which she founded.
Ms Mojela was one of the six board members who were thrown out of the company on June 23 following a coup from ‘concerned shareholders’ who held a collective 54% stake in the company. The move was thought to be an act of retaliation.
Despite ultimately unsuccessful legal efforts to recoup the Lesotho operations, the loss of its Bophelo subsidiary cost the company around £2.3m
Since then the company has pushed through numerous stock splits to prevent being delisted from the NASDAQ, lost its former CEO in who was subsequently embroiled in a separate legal dispute, and gradually sold off its assets.
After failed loan agreements, a restructuring plan and years with its shareholder Halo Collective’s CEO, Katie Field, at its helm as interim CEO, Akanda seems to have emerged with a new sense of direction.
According to its latest update, this shift in direction was made after Canmart’s directors announced their intention to resign. The board, having determined that the ‘expense and timing’ of replacing the staff, renewing its UK licence and finalising Canmart’s existing lawsuits was ‘not cost-effective’.
As such, Akanda has entered into a Share Exchange Agreement with First Towers & Fiber Corp, a telecommunications infrastructure firm based in British Columbia, which will see Akanda acquire First Towers as a wholly owned subsidiary.
Shareholders will receive either common shares of Akanda or a cash payout totalling approximately $14.1 million to be paid 18 months post-closing.
Upon completion, First Towers shareholders will control approximately 83.1% of the combined entity, while certain First Towers debt holders will own another 5.8%.
First Towers operates a 700+ km fibre optic network in Mexico, supporting 5G infrastructure and tower development. According to the company, it has 24 towers deployed and six more under construction and plays a key role in expanding connectivity in rural and industrial areas.
Argent BioPharma
Argent BioPharma signed an exclusive agreement with SK-Pharma’s CEO Dr Schlomo Sadoun, to ‘facilitate a commercial transaction’ for its manufacturing facility in Malta.
Sadoun, who has served as a financial advisor to the company for some time, will be granted three months exclusivity to secure a potential investment, contract manufacturing deal, or a supply and distribution agreement of no less than $1m, payable from profits generated by the counterparty.
Argent says that it will ‘retain the ability to produce its product portfolio’ at the Malta facility at cost after a deal is reached.
It comes amid a broader strategic shift, seeing it transfer the manufacture of its proprietary portfolio to ECCPharm’s EU-GMP-certified facility, following its recently signed collaboration agreement.
As such, its Malta facility will be ‘actively repositioned’ as a Contract Manufacturing Operations (CMO) service, catering to pharmaceutical companies.
The Company anticipates this move will result in significant cost efficiencies and improve the cost of goods sold for Argent BioPharma under the structured agreement with ECCPharm.
Roby Zomer, CEO & Managing Director of Argent BioPharma, commented: “We are pleased to engage Dr Sadoun to explore strategic options for our Malta-based manufacturing facility. This agreement provides a structured framework to assess opportunities that align with our long-term vision while ensuring value for shareholders. We look forward to evaluating potential transactions that enhance our operational and financial position.”
Chill Brands
UK-based online CBD and wellness retailer Chill Brands has this week announced plans to raise up to £1 million through a convertible loan note issue.
The loan will have a 10% interest rate and mature in three years, with the proceeds going towards supporting its 2025 growth strategy.
This will include to development and launch new reusable, pod-based vape devices ahead of the UK’s disposal vape ban in June.
It will also use the newly raised cash to expand marketing efforts for the Chill.com marketplace, grow its sales and distribution network, and support working capital needs, including potential acquisitions.
In an accompanying business update, Chill says that despite challenges in 2024, it continues to sell its remaining disposable vape inventory while preparing for the upcoming ban.
The Chill.com marketplace now hosts nearly 70 brands, and new funds will be used to boost online advertising, launch a loyalty program, and improve fulfilment services.
Meanwhile, the company’s Retail Distribution Services division, launched in December 2024, has already secured distribution deals for oral nicotine pouches, a sugar-free energy drink, vape liquids, and popular confectionery products. This division is expected to drive higher sales volumes and revenue growth throughout 2025.
Months after its shares were suspended on the London Stock Exchange (LSE), Chill Brands says it is working to complete its statutory audit for the year ending March 31, 2024, with an expected completion in Q1 2025. Once its audited financials and interim results are published, the company will apply for the resumption of share trading.
