Akanda Corp. Driving Recurring Revenue Growth: $2 Million Cash Flow Secured Through Fiber Acquisition

Rhea-AI Summary

Akanda (NASDAQ: AKAN) expanded its Mexican dark fiber network by ~200 kilometres to ~900 kilometres, secured via a long-term IRU expected to generate approximately USD $2.0 million in contracted cash flow over 10 years. The deal includes enterprise customers under a five-year initial lease with a five-year renewal option.

The acquisition targets the Bajío industrial corridor, aims to increase network density and margin leverage, and is described as the first of several proposed bolt-on transactions to scale FTF's high-margin digital infrastructure platform.

Positive

• 200 km network added, increasing coverage to ~900 km
• Contracted USD $2.0M cash flow over 10 years
• IRU structure with 5-year initial term plus 5-year renewal option
• Focus on Bajío industrial corridor supports targeted enterprise demand
• Asset class benefits from low operating costs and margin leverage

Negative

• None.

News Market Reaction – AKAN

-12.87% 73.0x vol

30 alerts

-12.87% News Effect

+17.0% Peak Tracked

-40.0% Trough Tracked

-$235K Valuation Impact

$1.59M Market Cap

73.0x Rel. Volume

On the day this news was published, AKAN declined 12.87%, reflecting a significant negative market reaction. Argus tracked a peak move of +17.0% during that session. Argus tracked a trough of -40.0% from its starting point during tracking. Our momentum scanner triggered 30 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $235K from the company's valuation, bringing the market cap to $1.59M at that time. Trading volume was exceptionally heavy at 73.0x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

New fiber added: 200 kilometres Total network length: 900 kilometres Contracted cash flow: USD $2.0 million +5 more

8 metrics

New fiber added 200 kilometres Additional dark fiber network length in Central Mexico

Total network length 900 kilometres FTF dark fiber coverage across Central Mexico after expansion

Contracted cash flow USD $2.0 million Expected over 10 years from IRU agreement

IRU term 10 years Duration over which contracted cash flow is generated

Fiber strands 48-strand fiber Specifications of the added 200 km infrastructure

Master lease initial term 5 years Initial term for enterprise customers under master lease

Master lease renewal option 5 years Optional renewal period under master lease structure

Pre-news 52-week high discount -98.3% Price vs 52-week high before acquisition news

Market Reality Check

Price: $0.6979 Vol: Volume 43,009 is below 20...

low vol

$0.6979 Last Close

Volume Volume 43,009 is below 20-day average 77,358 (relative volume 0.56x) ahead of this news. low

Technical Price 0.7904 is trading below the 200-day MA at 10.44, reflecting a heavily depressed longer-term trend.

Peers on Argus

AKAN’s pre-news price was $0.7904 (down 1.45% over 24h) while healthcare peers s...

AKAN’s pre-news price was $0.7904 (down 1.45% over 24h) while healthcare peers showed mixed moves: UPC +6.51%, PRFX +0.91%, SHPH -0.96%, RDHL +2.03%, INM +3.23%. The dark-fiber acquisition news appears stock-specific rather than part of a coordinated sector move.

Historical Context

5 past events · Latest: Feb 27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 27	FTF network profile	Positive	+13.1%	Highlighted 700-kilometre dark fiber network and plans to grow leasing.
Jan 23	Financing closed	Negative	+11.1%	Closed $7.0M convertible note financing for marketing, working capital and debt.
Jan 20	Financing announced	Negative	+41.7%	Announced $7.0M private placement of 12‑month convertible promissory notes.
Jan 08	Reverse stock split	Negative	-14.8%	Implemented 1-for-5 reverse split reducing outstanding share count significantly.
Dec 18	Policy commentary	Positive	-7.5%	Welcomed potential U.S. cannabis policy reform and highlighted possible benefits.

Pattern Detected

News tied to FTF’s fiber platform and financing has often seen the stock move sharply, with several instances of price reactions diverging from what typical sentiment on offerings and strategic updates might suggest.

Recent Company History

Over the last few months, Akanda has been reshaping itself around First Towers & Fiber (FTF) and telecom infrastructure. On Jan 8, a 1-for-5 reverse split preceded ongoing financing steps, including a $7.0M convertible note announcement and closing in late January that drew strong positive price reactions. On Feb 27, the company highlighted FTF’s roughly 700-kilometre dark fiber network and expansion plans, which also lifted the stock. Today’s acquisition-driven expansion to about 900 kilometres continues that fiber-focused growth trajectory and recurring revenue build-out.

Market Pulse Summary

The stock dropped -12.9% in the session following this news. A negative reaction despite the fiber e...

Analysis

The stock dropped -12.9% in the session following this news. A negative reaction despite the fiber expansion would fit a pattern where the market focuses on broader balance-sheet and dilution risks rather than strategic milestones. The deal adds around 200 kilometres of dark fiber and about USD $2.0 million in contracted cash flow over 10 years, building on February’s 700-kilometre network profile. However, prior reverse splits and multiple convertible note financings, alongside a price sitting 98.3% below the 52-week high, could continue to anchor sentiment.

Key Terms

dark fiber, indefeasible right of use, iru, master lease, +2 more

6 terms

dark fiber technical

"an expansion of its dark fiber network with the addition of approximately 200 kilometres"

Dark fiber is unused or unlit optical fiber cable installed in the ground or buildings that can carry data but currently has no active equipment powering it. Investors care because it’s a physical, long-lived infrastructure asset that can be leased or activated to quickly expand network capacity without laying new cable, offering steady, contract-based revenue potential but also requiring upfront capital and facing technology and demand risks.

indefeasible right of use financial

"backed by a long-term Indefeasible Right of Use (IRU) agreement expected to generate"

An indefeasible right of use (IRU) is a long-term, nonrevocable contract that gives a party exclusive use of a specific portion of communications infrastructure, such as fiber-optic cable strands or satellite capacity, typically for many years. For investors, IRUs matter because they behave like permanent assets that secure capacity and predictable costs or revenue over time—similar to buying a dedicated lane on a highway—so they can stabilise cash flows, influence valuation and reduce operational risk.

iru financial

"long-term Indefeasible Right of Use (IRU) agreement expected to generate approximately"

An IRU (Indefeasible Right of Use) is a long-term, non-cancelable contract that gives a buyer exclusive use of a portion of physical network capacity—most often fiber optic cable—for a fixed period, often decades. Investors care because an IRU acts like owning a long lease on critical infrastructure: it creates predictable future service capacity and revenue potential, ties up capital upfront, and shows up on the balance sheet as a durable asset that affects valuation and risk.

master lease financial

"enterprise customers under a Master Lease structure that includes a five-year initial term"

A master lease is a single, overarching lease agreement that covers multiple properties or assets and sets the main terms for how they will be used, paid for, and maintained—like a master key that opens many doors at once. It matters to investors because it shapes where cash flows come from, who bears operating costs and risks, and how easy it is to sell, finance, or change the assets; a strong master lease can make income more predictable, while a restrictive one can limit flexibility and increase risk.

hyperscalers technical

"lease the remaining fiber strands to telecom carriers, hyperscalers, and multinational enterprises"

Hyperscalers are large technology companies that operate massive computing networks and data centers to provide cloud services, data storage, and online infrastructure at an enormous scale. They are essential to the digital economy because they enable businesses and organizations to handle vast amounts of data and run complex applications efficiently. For investors, hyperscalers represent powerful engines of growth and innovation in the technology sector.

carrier-grade connectivity technical

"position FTF as a premium provider of carrier-grade connectivity, a sector characterized"

Carrier-grade connectivity is a high-reliability network service built to meet the strict performance, uptime, and security expectations of large businesses and communications providers. Think of it like a major highway built and maintained to handle heavy, nonstop traffic without breakdowns; investors care because it supports steady revenue, lower service outages and repair costs, and the ability to scale and win and retain large, mission-critical customers.

AI-generated analysis. Not financial advice.

Toronto, Ontario--(Newsfile Corp. - March 26, 2026) - Akanda Corp. (NASDAQ: AKAN) ("Akanda") and its wholly owned subsidiary, First Towers & Fiber Corp. ("FTF" or the "Company"), an emerging telecommunications infrastructure developer in Mexico, are pleased to announce an expansion of its dark fiber network with the addition of approximately 200 kilometres, increasing total network coverage to approximately 900 kilometres across Central Mexico.

This milestone is expected to materially advance FTF's strategy to build a scaled, high-margin, cash-flow-generating digital infrastructure platform in what the Company believes is one of Latin America's most attractive and undersupplied connectivity markets.

Highlights

Contracted, Predictable Cash Flow
The newly secured 200 km of 48-strand fiber infrastructure is backed by a long-term Indefeasible Right of Use (IRU) agreement expected to generate approximately USD $2.0 million in contracted cash flow over a 10-year period. This revenue is underpinned by existing, stable enterprise customers under a Master Lease structure that includes a five-year initial term with a five-year renewal option.

High-Margin Infrastructure with Operating Leverage
FTF believes that dark fiber assets benefit from low operating costs and significant incremental margin expansion, enabling strong free cash flow conversion as utilization increases.

Exposure to a High-Growth Economic Corridor
The Bajío region is considered one of Mexico's most important industrial hubs, driven by manufacturing, logistics, and international investment. While the anchor tenants have already contractually committed to the expanded network, FTF continues to position itself to strategically capture significant additional upside by seeking to lease the remaining fiber strands to telecom carriers, hyperscalers, and multinational enterprises in the Bajío region.

Platform for Accelerated Scaling
This expansion enhances the Company's network density and interconnectivity, creating a scalable backbone capable of supporting rapid customer growth with limited incremental capital expenditure.

Mission-Critical Infrastructure with Strong Barriers to Entry
The enhanced redundancy and resiliency afforded by the expansion is expected to position FTF as a premium provider of carrier-grade connectivity, a sector characterized by high barriers to entry and long asset life.

"This transaction is a clear demonstration of our strategy to rapidly build a scaled, cash-flowing telecommunications infrastructure platform in Mexico," commented Chris Cooper, President of FTF. "We are not just adding kilometres - we are adding high-quality, contracted revenue with meaningful upside."

"With this expansion, we believe that we are strengthening our position in one of the country's important economic corridors while creating a foundation for accelerated growth, margin expansion, and long-term shareholder value. This is the first of several proposed acquisitions we are pursuing as we execute on a disciplined roll-up strategy in the digital infrastructure sector."

Positioned for Aggressive Growth

This acquisition represents the first step in a broader pipeline of proposed targeted transactions aimed at consolidating premium fiber assets across Mexico. Management is evaluating additional opportunities to expand network reach, increase contracted revenue, and drive scale.

With a growing base of predictable cash flows, strong operating leverage, and increasing strategic relevance to global connectivity demand, FTF is positioning itself as a compelling platform for strategic partners and other interested parties seeking exposure to digital infrastructure growth in Latin America.

About First Towers & Fiber Corp.
First Towers & Fiber Corp. is an emerging developer of telecommunications infrastructure in Mexico, specializing in cellular tower construction and dark fiber networks. FTF partners with national carriers and technology providers to deliver scalable, reliable, and future-ready connectivity solutions, driving both commercial growth and digital inclusion.

For further information, contact:

AKANDA CORP. GENERAL ENQUIRIES
E: 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.

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 Akanda's acquisition of FTF; (iii) the limited operating history of each of Akanda and FTF; (iv) the ability of Akanda and its subsidiaries (collectively, "Akanda Group") to grow and manage growth effectively; (v) the ability of Akanda Group to execute their business plans; (vi) estimates of the size of the markets for Akanda Group's products and services; (vii) the rate and degree of market acceptance of Akanda Group's products and services; (viii) Akanda Group's ability to identify and integrate acquisitions; (ix) future investments in technology and operations; (x) potential litigation involving Akanda Group; (xi) risks relating to the uncertainty of projected financial information; (xii) the effects of competition on Akanda Group'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 Akanda Group's products and services; (xvi) the ability to meet Nasdaq's listing standards; (xvii) the ability of Akanda to raise capital, and to issue equity or equity-linked securities in the future; (xviii) the ability of Akanda to manage its significant debt load and liabilities; and (xix) such other risks and uncertainties as are discussed in Akanda's Annual Report on Form 20-F filed with the SEC or in other documents Akanda files from time to time with the SEC. Akanda 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 Akanda'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 Akanda 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 Akanda 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 Akanda'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/289971

FAQ

What did Akanda (AKAN) announce on March 26, 2026 about its fiber network expansion?

Akanda announced an expansion adding approximately 200 km, raising total coverage to ~900 km. According to the company, the addition is backed by an IRU and serves enterprise customers in Mexico's Bajío region to drive contracted cash flow.

How much contracted cash flow will the new fiber acquisition generate for AKAN and over what period?

The acquisition is expected to generate approximately USD $2.0 million in contracted cash flow over a 10-year period. According to the company, revenue is underpinned by enterprise customers under a Master Lease structure.

What are the lease terms tied to the new 200 km fiber IRU announced by AKAN?

The IRU includes a five-year initial term with a five-year renewal option and is structured under a Master Lease. According to the company, this provides predictable, long-term contracted cash flows from existing enterprise tenants.

How does the AKAN acquisition affect FTF's position in Mexico's Bajío region?

The expansion strengthens FTF's presence in the Bajío industrial corridor and enhances network density and redundancy. According to the company, this positions FTF to pursue additional leasing to carriers, hyperscalers, and multinational enterprises.

What strategic rationale did Akanda provide for pursuing further fiber acquisitions after the March 26, 2026 deal?

Akanda cited a disciplined roll-up strategy to scale a high-margin digital infrastructure platform and increase contracted revenue. According to the company, this acquisition is the first step in a pipeline of proposed targeted transactions across Mexico.