Akanda Announces Receipt of Nasdaq Notice Regarding Minimum Stockholders' Equity Requirement

Akanda (NASDAQ: AKAN) received a Nasdaq notice on June 16, 2026 for not meeting Listing Rule 5550(b)(1), which requires at least $2.5 million in stockholders' equity.

Rhea-AI Summary

Akanda (NASDAQ: AKAN) received a Nasdaq notice on June 16, 2026 for not meeting Listing Rule 5550(b)(1), which requires at least $2.5 million in stockholders' equity. Akanda reported -$11,990,437 equity as of December 31, 2025. The notice has no immediate effect on listing. Akanda has until July 31, 2026 to submit a compliance plan and may receive up to 180 days from the notice date to regain compliance.

Positive

• Nasdaq notice has no immediate effect on Akanda's Nasdaq Capital Market listing
• Akanda has 45 days, until July 31, 2026, to submit a compliance plan
• Nasdaq may grant up to 180 days from notice date to regain compliance

Negative

• Noncompliance with Nasdaq Rule 5550(b)(1) minimum $2.5 million stockholders' equity
• Reported stockholders' equity of -$11,990,437 as of December 31, 2025
• Does not meet alternative Nasdaq standards for market value or net income

Argus Jun 22 session

-17.20% close to close Open Argus

Details

News Market Reaction – AKAN

In the Jun 22 session, AKAN declined 17.20%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -17.2% in the session following this news. A negative reaction despite positive ne...

Analysis

The stock dropped -17.2% in the session following this news. A negative reaction despite positive news fits earlier volatility patterns, where governance and listing headlines produced swings of -12.02% to 48.6%; persistent Nasdaq equity deficiencies and leverage concerns could continue to pressure sentiment.

Key Figures

Nasdaq equity requirement: $2.5 million Reported stockholders' equity: $-11,990,437 Compliance plan deadline: 45 calendar days +5 more

Nasdaq equity requirement

$2.5 million

Minimum stockholders' equity under Nasdaq Listing Rule 5550(b)(1)

Reported stockholders' equity

$-11,990,437

As of December 31, 2025 per Form 20-F

Compliance plan deadline

45 calendar days

Time to submit plan to regain Nasdaq equity compliance

Maximum extension period

180 calendar days

Potential Nasdaq extension to regain listing compliance

Assumed First Towers debt

$20 million

Debt assumed in tower and fiber acquisition, per 20-F

Current liabilities

$6,199,365

Reported as of December 31, 2025 in 20-F

Shares outstanding

1,983,546

Common shares outstanding as of December 31, 2025

Reverse split ratio

1-for-4.5

Reverse stock split effective April 13, 2026

Historical Context

5 past events · Latest: Jun 12

5 events

1. Jun 12

   Nasdaq compliance update

   24h Move

   +24.4%

   Regained compliance with Nasdaq periodic filing rule after submitting Form 20-F.

2. May 22

   Nasdaq noncompliance notice

   24h Move

   -12.0%

   Nasdaq notice for missing deadline to file Form 20-F annual report.

3. May 22

   Special meeting cancellation

   24h Move

   +15.6%

   Cancelled special shareholder meeting due to expected failure to reach quorum.

4. Apr 29

   Special meeting adjournment

   24h Move

   +48.6%

   Adjourned special meeting after failing to achieve quorum; no business conducted.

5. Apr 09

   Reverse stock split

   24h Move

   -3.9%

   Announced 1-for-4.5 reverse stock split to consolidate outstanding common shares.

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

Key Terms

form 20-f, nasdaq capital market, stockholders' equity, net income from continuing operations

4 terms

form 20-f regulatory

"reported in the Company's Annual Report on Form 20-F for the fiscal year"

Form 20-F is the standardized annual disclosure that non-U.S. companies must file with the U.S. securities regulator when their shares are traded in the U.S.; it contains audited financial statements, a plain-language description of the business, management discussion, governance details and key risk factors. It matters to investors because it provides a consistent, comparable company “report card” and rulebook, helping buyers assess financial health, governance and risks before investing.

nasdaq capital market regulatory

"companies listed on The Nasdaq Capital Market to maintain a minimum of"

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

stockholders' equity financial

"to maintain a minimum of $2.5 million in stockholders' equity for continued listing"

Stockholders' equity is the portion of a company's assets that belongs to its owners after all debts and obligations are paid; think of it as the value left for shareholders if the company sold everything and paid off what it owes. Investors watch it because it shows the company's net worth, indicates how much of growth is funded by owners versus debt, and helps assess financial health and the potential for future dividends or stock value increases — like the equity in a house after the mortgage is settled.

net income from continuing operations financial

"alternative continued listing standards relating to market value of listed securities or net income from continuing operations."

Net income from continuing operations is the profit a company earns from its ongoing, day-to-day business after paying costs, interest and taxes, excluding results from businesses it has sold or closed and one-time gains or losses. Investors care because it shows the company's recurring earning power—like comparing a regular paycheck to a one-off bonus—and gives a clearer picture of sustainable profits used to value the business and judge management performance.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Toronto, Ontario--(Newsfile Corp. - June 18, 2026) - Akanda Corp. (NASDAQ: AKAN) (the "Company" or "Akanda"), today announced that it received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") on June 16, 2026 indicating that the Company is not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires companies listed on The Nasdaq Capital Market to maintain a minimum of $2.5 million in stockholders' equity for continued listing.

As reported in the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2025, the Company reported stockholders' equity of $-11,990,437. Nasdaq also determined that the Company does not meet the alternative continued listing standards relating to market value of listed securities or net income from continuing operations.

The notification has no immediate effect on the listing of the Company's common shares on The Nasdaq Capital Market. Under Nasdaq rules, the Company has 45 calendar days, or until July 31, 2026, to submit a plan to regain compliance. If Nasdaq accepts the Company's plan, Nasdaq may grant an extension of up to 180 calendar days from the date of the notice to regain compliance.

The Company intends to submit a compliance plan within the prescribed timeframe and is evaluating various alternatives to regain compliance with the applicable listing requirements.

—Ends—

For further information contact:

AKANDA CORP. GENERAL ENQUIRIES
E: ir@akandacorp.com

About Akanda Corp.

Akanda Corp., through its cannabis subsidiary with operations in Canada, is seeking to cultivate and distribute high-quality cannabis and wellness products that improve lives. Its mission is to provide safe, reliable, and accessible cannabis products to consumers worldwide while promoting sustainable business practices.

First Towers & Fiber Corp., a wholly-owned subsidiary of Akanda Corp., is focused on tower development and operating its 700+km fiber optic network in the attractive wireless market of Mexico, with an intention to expand to other Latin American countries.

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include statements regarding the Company's plans to regain compliance with Nasdaq listing requirements, and the risks and uncertainties described in Akanda's filings from time to time with the SEC. Akanda undertakes no obligation to revise or update any forward-looking statements, except as required by applicable laws or regulations, to reflect events or circumstances after the date of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302121

FAQ

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

What Nasdaq notice did Akanda (NASDAQ: AKAN) receive on June 16, 2026?

Akanda received a Nasdaq notice that it is not in compliance with Listing Rule 5550(b)(1). According to Akanda, this rule requires at least $2.5 million in stockholders' equity for continued listing on the Nasdaq Capital Market.

Why is Akanda not meeting Nasdaq's minimum stockholders' equity requirement?

Akanda is not meeting the requirement because it reported stockholders' equity of -$11,990,437. According to Akanda, this figure comes from its Form 20-F for the year ended December 31, 2025, below the $2.5 million minimum.

How long does Akanda have to regain Nasdaq compliance for AKAN stock?

Akanda has 45 calendar days, until July 31, 2026, to submit a compliance plan. According to Akanda, if Nasdaq accepts the plan, the exchange may allow up to 180 days from the notice date to regain compliance.

Does the Nasdaq noncompliance notice affect Akanda's current listing status?

The Nasdaq notice has no immediate effect on Akanda's listing status. According to Akanda, its common shares continue trading on the Nasdaq Capital Market while it prepares and submits a plan to regain compliance.

What alternatives is Akanda considering to regain Nasdaq listing compliance?

Akanda is evaluating various alternatives to regain compliance with Nasdaq listing requirements. According to Akanda, the company intends to submit a formal compliance plan within the prescribed timeframe, but specific measures have not been detailed in the announcement.