Akanda Jumps 77% In Pre-Market Trading On Bitcoin, AI Cannabis Pivot
Akanda Corp (NASDAQ: AKAN) is apparently looking to grab some of the ongoing hype surrounding AI, bitcoin, and cryptocurrencies, announcing this morning that it has a strategic plan to “evaluate and enter bitcoin, blockchain, AI segments of the cannabis markets.”
Akanda’s current exposure to the cannabis market amounts to owning Canmart in the UK, which is a licensed importer and distributor of cannabis products for medical use. The company also operates the Gabriola Green Project in BC, Canada, which is intended to host facilities for cannabis production and has production facilities in Portugal under the Holigen banner.
In announcing the move, Akanda claimed that crypto might provide a “viable solution” to some of the banking problems currently experienced by cannabis operators, despite the constant barrage of lawsuits currently facing the industry. The argument put forth however is that with the cannabis industry facing difficulties with traditional banking, it should wade into the waters of crypto for banking purposes.
From a blockchain perspective, the addition of this tech is expected to assist with quality control and the supply chain by using blockchain tech for certificates of analysis, or COA’s. COA’s are said to currently be vulnerable to fraud and tampering, which the use of blockchain could eliminate if used from cultivation through to sale.
Perhaps the most humourous suggestion put forth by Akanda however is the use of artificial intelligence, which could “identify which strains of cannabis are selling best for an organization.” Proposed suggestions for the tech all include using data from researchers to customize plants to treat specific ailments, or identifying what strains best fit a specified target audience.
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“Akanda is in a strong position to execute a new sustainable strategic direction. The Company is in a better cash position and plans to reduce debt. We are looking forward to the Company’s anticipated expansion through our UK business but also by entering ancillary technological segments that are supportive to our model and offer opportunities for growth,” said Katie Field, Interim CEO of Akanda.
Despite the lack of substance to the announcement, the company is currently trading up 77% in pre-market trading off the back of the news.
Akanda last closed at $0.16 on the Nasdaq.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
