Akanda Announces Closing of $7.0 Million Convertible Note Offering

Akanda (NASDAQ: AKAN) closed a private placement of 12-month convertible promissory notes for an aggregate purchase price of $7.0 million on January 23, 2026.

Rhea-AI Summary

Akanda (NASDAQ: AKAN) closed a private placement of 12-month convertible promissory notes for an aggregate purchase price of $7.0 million on January 23, 2026. The company said net proceeds will be used for marketing up to $2.3 million, working capital and general corporate purposes ~ $2.6 million, and up to $2.1 million to repay debt. Univest Securities acted as exclusive placement agent and Ruskin Moscou Faltischek served as company counsel. The notes and shares issuable on conversion are unregistered under the Securities Act and may not be offered or sold in the U.S. absent registration or an exemption. Additional transaction details are filed in the company's Form 6-K.

Positive

• Raised $7.0 million via 12-month convertible notes
• Allocated up to $2.3M for marketing spend
• Allocated approximately $2.6M for working capital and corporate purposes
• Up to $2.1M earmarked to reduce debt

Negative

• Notes convert into common shares, creating potential shareholder dilution
• Securities are unregistered, restricting resale until registration or an exemption
• 12-month maturity imposes a near-term funding or refinancing timeline

Argus Jan 23 session

+11.11% close to close Open Argus

Details

News Market Reaction – AKAN

In the Jan 23 session, AKAN gained 11.11%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +11.1% in the session following this news. A strong positive reaction aligns with h...

Analysis

The stock surged +11.1% in the session following this news. A strong positive reaction aligns with how AKAN previously traded around the initial $7.0 million note announcement, which saw a 41.73% move. Closing the 12‑month convertible financing confirms access to capital earmarked for $2.3 million in marketing, about $2.6 million for working capital, and up to $2.1 million for debt. Investors could still weigh dilution from convertibility against balance sheet reinforcement.

Key Figures

Convertible note size: $7.0 million Note term: 12 month Marketing allocation: Up to $2.3 million +2 more

Convertible note size

$7.0 million

Aggregate purchase price of 12‑month convertible promissory notes

Note term

12 month

Maturity of issued convertible promissory notes

Marketing allocation

Up to $2.3 million

Proceeds designated for marketing purposes

Working capital allocation

Approximately $2.6 million

Proceeds for working capital and general corporate purposes

Debt allocation

Up to $2.1 million

Proceeds designated to be used for debt

Previous Offering Reports

1 past event · Latest: Jan 20

Same Type 1 event

1. Jan 20

   Convertible offering

   24h Move

   +41.7%

   Announced $7.0M 12‑month convertible note financing and use-of-proceeds plan.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible promissory notes, private placement, Form 6-K

3 terms

convertible promissory notes financial

"purchase and sale of 12 month, convertible promissory notes for an aggregate"

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

"in a private placement transaction. The Company shall use the proceeds"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

Form 6-K regulatory

"details regarding the notes and the transaction are available in the Company's Form 6-K,"

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. How Rhea-AI works. Not financial advice.

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Toronto, Ontario--(Newsfile Corp. - January 23, 2026) - Akanda Corp. (NASDAQ: AKAN) ("Akanda" or the "Company") today announced the closing of its previously announced transaction 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 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 are available in the Company's Form 6-K, filed on January 20, 2026 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/281373

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Akanda announce on January 23, 2026 regarding financing for AKAN?

Akanda closed a private placement of 12-month convertible notes totaling $7.0 million.

How will Akanda use the $7.0 million raised in the AKAN convertible note offering?

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

Who acted as placement agent and counsel in the AKAN note offering?

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

Are the AKAN notes or shares immediately tradable in the U.S.?

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

What is the maturity of the convertible notes in the AKAN offering?

The notes have a 12-month maturity.