LONDON - Akanda Corp. (NASDAQ: AKAN), an international medical cannabis company, has received a deficiency notification from the Nasdaq Listing Qualifications Department on May 14, 2024. The notice was issued because the company did not meet the minimum stockholders' equity requirement of $2,500,000, as per Nasdaq Listing Rule 5550(b)(1). According to Akanda's Form 20-F for the fiscal year ending December 31, 2023, the company's stockholders' equity stood at a negative $3,828,892.
The company has not met alternative compliance standards based on the market value of listed securities or net income from continuing operations. Akanda has until June 28, 2024, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 days to demonstrate compliance.
Katie Field, Interim CEO of Akanda, stated that immediate steps are being taken to address the issue and the company is focused on actions to regain compliance with Nasdaq's listing requirements. She also expressed gratitude for the support from investors during this period.
This notification does not affect Akanda's current listing on the Nasdaq, and its shares will continue to trade on the Nasdaq Capital Market under the symbol "AKAN". The company will provide updates on its progress in regaining compliance as necessary.
Akanda's business includes CanMart, a UK-based pharmaceutical importer and distributor, and partnerships with Cellen Life Sciences' Leva Clinic, a digital pain clinic in the UK. Additionally, Akanda has acquired development rights for a farming property in British Columbia, Canada, intended for THC and CBD facilities.
This press release statement is in line with Nasdaq Listing Rule 5810(b), which requires timely public disclosure of a deficiency notification. The information is based on the press release statement and does not include any forward-looking statements from Akanda.
InvestingPro Insights
As Akanda Corp. (NASDAQ: AKAN) navigates through its recent Nasdaq compliance challenges, real-time metrics from InvestingPro shed light on the company's financial health and market performance. With a market capitalization of just $0.88 million USD, the company's size is a critical factor to consider. The data indicates that Akanda's price-to-earnings (P/E) ratio stands at -0.07 when adjusted for the last twelve months as of Q4 2023, underscoring the company's lack of profitability during this period.
Moreover, the company's revenue has seen a decline of 17.55% over the last twelve months as of Q4 2023, which could be a concern for investors gauging the company's growth trajectory. In the same period, Akanda's gross profit margin was recorded at a slim 5.16%, pointing to challenges in maintaining profitability amidst operational costs.
InvestingPro Tips highlight two particularly relevant points for investors: Akanda operates with a significant debt burden and has been quickly burning through cash. These factors, combined with the recent deficiency notification from Nasdaq, could influence investor sentiment and the company's strategic decisions moving forward. For those looking to delve deeper into Akanda's financials and future outlook, InvestingPro offers additional insights; there are 14 more InvestingPro Tips available, which could be pivotal in making informed investment decisions.
For those interested in accessing these comprehensive analyses, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.