Akanda Announces $7.0 Million Convertible Note Offering

Rhea-AI Summary

Akanda (NASDAQ: AKAN) announced a private placement of 12-month convertible promissory notes for an aggregate purchase price of $7.0 million, with closing expected on January 21, 2026, subject to customary conditions. Proceeds are allocated: up to $2.3M for marketing, approximately $2.6M for working capital and general corporate purposes, and up to $2.1M to repay debt.

Univest Securities acted as exclusive placement agent and Ruskin Moscou Faltischek PC served as counsel. The notes and shares issuable on conversion are unregistered and may not be offered or sold in the U.S. without registration or an exemption. Additional details will be filed in a Form 6-K with the SEC.

Positive

• Raised $7.0 million in committed capital via convertible notes
• Proceeds allocated with $2.6M for working capital to support operations
• Placement executed with institutional investors and an exclusive placement agent

Negative

• Notes mature in 12 months, creating a near-term financing obligation
• Notes and conversion shares are unregistered, restricting resale and liquidity
• Up to $2.1M of proceeds earmarked to repay debt rather than fund growth

News Market Reaction – AKAN

+41.73% 48.4x vol

25 alerts

+41.73% News Effect

+66.9% Peak Tracked

-2.3% Trough Tracked

+$1M Valuation Impact

$4M Market Cap

48.4x Rel. Volume

On the day this news was published, AKAN gained 41.73%, reflecting a significant positive market reaction. Argus tracked a peak move of +66.9% during that session. Argus tracked a trough of -2.3% from its starting point during tracking. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $4M at that time. Trading volume was exceptionally heavy at 48.4x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Convertible note size: $7.0M Marketing allocation: $2.3M Working capital allocation: $2.6M +5 more

8 metrics

Convertible note size $7.0M Aggregate purchase price of 12‑month convertible promissory notes in private placement

Marketing allocation $2.3M Portion of note proceeds earmarked for marketing purposes

Working capital allocation $2.6M Proceeds designated for working capital and general corporate purposes

Debt allocation $2.1M Proceeds to be applied toward debt

Note term 12 months Maturity of newly issued convertible promissory notes

Registered resale shares 3,752,212 shares Shares registered for resale tied to $12M existing convertible notes (424B3)

Existing convertible principal $12,000,000 Principal under outstanding convertible promissory notes referenced in 424B3

Post-split share count 2.0M shares Approximate common shares outstanding after 1-for-5 reverse split

Market Reality Check

Price: $0.8802 Vol: Volume 316,014 vs 20-day ...

low vol

$0.8802 Last Close

Volume Volume 316,014 vs 20-day average 689,342 (about 0.46x typical activity) ahead of the offering. low

Technical Price 1.27 is trading below the 200-day MA of 14.54, reflecting sustained technical weakness.

Peers on Argus

Momentum data flags only 2 peers, with one moving up and one down, while the sca...

1 Up 1 Down

Momentum data flags only 2 peers, with one moving up and one down, while the scanner labels this as a stock-specific move rather than a broad sector rotation.

Historical Context

5 past events · Latest: Jan 08 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 08	Reverse stock split	Negative	-14.8%	1-for-5 reverse stock split reducing outstanding common shares substantially.
Dec 18	Policy reform comment	Positive	-7.5%	Company welcomed potential U.S. cannabis rescheduling and framed strategic benefits.
Dec 05	Infrastructure strategy	Positive	-1.3%	Update on Mexican towers and dark fiber expansion backed by prior convertible financing.
Nov 14	License preparation	Positive	-10.1%	Researching security requirements to pursue full Health Canada cultivation license.
Nov 13	License planning	Positive	-3.0%	Plans for staged build-out and milestones tied to THC and CBD activities.

Pattern Detected

Recent history shows predominantly negative price reactions to a wide range of announcements, including structural actions and strategically positive updates.

Recent Company History

Over the past few months, Akanda has focused heavily on capital structure and strategic repositioning. A 1-for-5 reverse split on Jan 12, 2026 cut outstanding shares from about 10.1M to 2.0M and was followed by a -14.81% reaction. Earlier, the company highlighted Mexican telecom infrastructure assets and work toward a full cultivation license in Canada, yet those generally positive narratives still saw modest to sharp declines (down to -10.08%). The new $7.0M convertible note fits into this ongoing balance-sheet and financing theme.

Market Pulse Summary

The stock surged +41.7% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +41.7% in the session following this news. A strong positive reaction aligns with the company’s need to secure funding, but the structure matters. Akanda already had $12M in convertible notes registered for resale and recently executed a 1-for-5 reverse split. Adding a new $7.0M convertible raises questions about future dilution. Historically, shares often reacted negatively even to upbeat updates, so sustained strength would depend on how efficiently these proceeds are deployed and how conversion terms impact the capital structure.

Key Terms

securities purchase agreement, convertible promissory notes, private placement, placement agent, +1 more

5 terms

securities purchase agreement financial

"announced the execution of a securities purchase agreement with institutional investors"

A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.

convertible promissory notes financial

"12 month, convertible promissory notes for an aggregate purchase price of $7.0 million"

A convertible promissory note is a loan a company takes that can later be turned into shares instead of being paid back in cash; think of lending money now in exchange for a voucher that can become ownership later. Investors care because it mixes credit risk and potential ownership upside—it can protect lenders if a company struggles while also diluting existing shareholders when converted, affecting future share value and investor returns.

private placement financial

"$7.0 million, in a private placement transaction."

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

placement agent financial

"Univest Securities, LLC acted as the exclusive placement agent in connection with the offering."

A placement agent is a professional or firm that helps organizations raise money from investors, such as individuals, institutions, or funds. They act like matchmakers, connecting those seeking investments with the right investors and guiding the process to ensure successful funding. For investors, they can provide access to exclusive opportunities and help navigate complex fundraising efforts.

Form 6-K regulatory

"available in the Company's Form 6-K, which will be filed with the U.S. Securities"

A Form 6-K is a report that companies listed in certain countries file to provide important updates, such as financial results, corporate changes, or other significant information, to regulators and investors. It functions like an official company update or news release, helping investors stay informed about developments that could affect their investment decisions.

AI-generated analysis. Not financial advice.

Toronto, Ontario--(Newsfile Corp. - January 20, 2026) - Akanda Corp. (NASDAQ: AKAN) ("Akanda" or the "Company") today announced the execution of a securities purchase agreement with institutional investors for the purchase and sale of 12 month, convertible promissory notes for an aggregate purchase price of $7.0 million, in a private placement transaction. The closing of the transaction is expected to occur, subject to customary closing conditions, on January 21, 2026.

The Company shall use the proceeds from the sale of the notes for (i) marketing purposes of up to $2.3 million, (ii) working capital and general corporate purposes of approximately $2.6 million and (iii) up to $2.1 million to be used for debt.

Univest Securities, LLC acted as the exclusive placement agent in connection with the offering. Ruskin Moscou Faltischek PC acted as transaction and securities counsel to the Company.

The notes and the common shares issuable upon the conversion of the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and, until so registered, may not be offered or sold in the United States or any state absent registration or an applicable exemption from registration requirements.

Additional details regarding the notes and the transaction will be available in the Company's Form 6-K, which will be filed with the U.S. Securities and Exchange Commission and available at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Company Contact:
ir@akandacorp.com

Forward-Looking Statements

This press release contains "forward-looking statements." Such statements which are not purely historical (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "intends," "would," "could" and "estimates") are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, post-closing obligations of the Company with respect to the Transaction.

Important factors, among others, that may affect actual results or outcomes include: (i) changes in domestic and foreign business, market, financial, political and legal conditions; (ii) failure to realize the anticipated benefits of the Company's acquisition of First Towers and Fiber Corp. (the "Transaction"); (iii) the limited operating history of the Company and its subsidiaries; (iv) the ability of the Company to grow and manage its growth effectively; (v) the ability of the Company to execute its business plans; (vi) estimates of the size of the markets for the Company's products and services; (vii) the rate and degree of market acceptance of the Company's products and services; (viii) the Company's ability to identify and integrate acquisitions; (ix) future investments in technology and operations; (x) potential litigation involving the Company; (xi) risks relating to the uncertainty of the projected financial information with respect to First Towers; (xii) the effects of competition on the Company's businesses; (xiii) developments and changes in laws and regulations; (xiv) the impact of significant investigative, regulatory or legal proceedings; (xv) general economic and market conditions impacting demand for the Company's products and services; (xvi) the ability to meet Nasdaq's listing standards; (xvii) the ability the Company to issue equity or equity-linked securities in connection with the Transaction or in the future; (xviii) the ability of the Company to manage its significant debt load and liabilities; (xix) such other risks and uncertainties as are discussed in the Company's Annual Report on Form 20-F filed with the SEC or in other documents the Company files from time to time with the SEC. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the Company's reports and statements filed from time-to-time with the Securities and Exchange Commission.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280918

FAQ

What did Akanda (AKAN) announce on January 20, 2026 regarding financing?

Akanda announced a private placement of 12-month convertible promissory notes for an aggregate purchase price of $7.0 million.

When is the Akanda (AKAN) convertible note transaction expected to close?

The company expects the closing to occur on January 21, 2026, subject to customary closing conditions.

How will Akanda (AKAN) use the $7.0 million proceeds from the offering?

Proceeds are allocated: up to $2.3M for marketing, approximately $2.6M for working capital and general corporate purposes, and up to $2.1M to repay debt.

Are the Akanda (AKAN) notes and conversion shares registered for public resale?

No; the notes and common shares issuable on conversion have not been registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption.

Who acted as placement agent and counsel for Akanda's offering?

Univest Securities acted as exclusive placement agent and Ruskin Moscou Faltischek PC served as transaction and securities counsel.