Akanda Corp (NASDAQ: AKAN) might be one of the few Nasdaq-listed names to conduct a reverse split within months of going public. The cannabis company last night announced that it has received a notice from the exchange indicating it is not in compliance within minimum pricing requirements.
Minimum pricing requirements for the Nasdaq indicate that issuers must maintain a minimum bid price of $1.00 or higher to remain listed on the exchange. Akanda has been struggling with this requirement, after having first fallen below the $1.00 mark in mid-August in a drawn out meltdown that has been occurring since May.
The company originally went public back in March as a spin out of Halo Collective (NEO: HALO), with the IPO priced at $4.00, with 4.0 million shares originally planned to be sold under the offering. The day of its market debut, it soared as high as $31, before settling at $10.50, and thereafter stayed in a range of $8.00 – $12.00 until mid-May. Come May 9 however, the equity tanked 75% to $2.29 on new real news, and has been in what effectively amounts to a perpetual decline since.
Following the dramatic fall from grace, shareholders kicked the C-suite to the curb in June after becoming disgruntled. The firms CEO, Tej Virk, was the only member that managed to remain in their role following the changes.
The company now has a period of 180 calendar days to get its equity above the $1.00 level, where it must stay for a period of ten consecutive trading sessions, or face delisting. The firm has indicated that it will consider available options, which includes conducting a share consolidation, also known as a reverse split, in order to maintain its listing.
Akanda Corp last traded at $0.41 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Tom Flow is a fake. No real schooling. Lied his way into Akanda Corp COO post. Last company he had went bankrupt.