AKANDA will undergo a 40-for-1 reverse stock split to adjust its share structure and maintain its trading activities on the Nasdaq Capital Market.
The reverse stock split aims to reduce the number of shares in circulation, potentially increasing the stock price without altering the company’s market capitalization.
Before the reverse stock split, AKAN’s stock showcased significant market volatility, with a trading range over the past year indicating challenges in the competitive cannabis industry.
On May 23, 2024, AKAN, an international medical cannabis company, announced a significant change in its stock structure through a 40-for-1 reverse stock split. This decision means that for every 40 shares previously owned by shareholders, they will now possess only 1 share. This move is a strategic effort by AKAN to adjust its share structure and is set to take effect when the market opens on the specified date. The company, which operates in the competitive cannabis industry, aims to continue its trading activities on The Nasdaq Capital Market under its existing symbol “AKAN”.
The reverse stock split will see AKAN’s issued and outstanding ordinary shares automatically consolidated, significantly reducing the number of shares in circulation. This adjustment is a common strategy companies use to increase their stock price by reducing the number of shares available without changing the company’s market capitalization. AKAN has also updated its CUSIP number to 00971M304, reflecting the consolidation of its shares. It’s noteworthy that no fractional shares will be issued as a result of this reverse stock split. Shareholders who would otherwise receive fractional shares will have those fractions rounded down, ensuring a smooth transition to the new share structure.
Before the announcement of the reverse stock split, AKAN’s stock was trading at $0.0916, marking a decrease of 1.51% with a change of -$0.0014. The stock experienced fluctuations throughout the day, ranging between a low of $0.0851 and a high of $0.0996. Over the past year, the shares have seen a high of $1.05 and a low of $0.085, indicating significant volatility in the market. The company’s market capitalization stands at approximately $2.93 million, with a trading volume of about 40.47 million shares on the NASDAQ exchange. This financial snapshot provides insight into AKAN’s performance and the challenges it faces in the market.
The decision to undergo a reverse stock split reflects AKAN’s strategic approach to navigating the complexities of the financial markets and the cannabis industry. By consolidating its shares, AKAN aims to create a more appealing investment profile and stabilize its stock price. This move is crucial for maintaining compliance with Nasdaq’s listing requirements and attracting new investors. As AKAN continues its operations in the competitive cannabis market, this reverse stock split represents a pivotal moment in the company’s financial strategy, aiming to strengthen its position and foster future growth.
