AKANDA Surges 28% on Telecom Merger and Share Registration

Company Overview

AKANDA CORP (NASDAQ: AKAN) is a London-headquartered, integrated medical cannabis company operating in international markets. On October 1, 2025, AKAN shares closed at $5.58, representing a 28.13 percent increase from the previous trading session, with a trading volume of 179,388 shares on the NASDAQ Capital Market. The company cultivates and distributes medical-grade cannabis flower and wellness products through specialized indoor facilities.

Corporate Structure

AKANDA CORP operates as a privately held entity, employing between 201–500 individuals. Key aspects of its structure include:

• Headquarters: London, United Kingdom
• Industry: Wellness and Fitness Services, with a focus on medical cannabis
• Listing: NASDAQ Capital Market under the ticker AKAN
• Classification: Emerging growth company and foreign private issuer under U.S. Securities and Exchange Commission rules

Medical cannabis by Budding .

Recent Developments and News

On March 10, 2025, AKANDA CORP entered into a Share Exchange Agreement with First Towers & Fiber Corp., a telecommunications infrastructure company incorporated in British Columbia. Under the agreement:

• First Towers shareholders will receive one AKAN share for every 2.5 First Towers shares, totaling approximately 15.3 million AKAN shares, subject to adjustment.
• Certain First Towers shareholders will receive an aggregate of US $14.1 million in cash, payable 18 months after the completion of the transaction.
• Upon completion, First Towers shareholders are expected to own 83.1 percent of the combined company, while debt holders will receive 5.8 percent as part of the debt settlement.

In conjunction with this transaction, AKANDA CORP reaffirmed its plans to develop THC and CBD cultivation facilities at its pre-revenue farming property in British Columbia, while halting cannabis import and distribution operations in the United Kingdom through its Canmart Ltd. subsidiary. The company’s common shares will continue to trade as AKAN on NASDAQ.

On October 1, 2025, AKANDA filed a Form 424B3 prospectus registering up to 18,761,062 common shares issuable upon the conversion of US $12 million in convertible promissory notes. The calculation uses a floor price of $0.678 per share. As of September 26, 2025, AKAN’s closing price was $3.98.

Financial and Strategic Analysis

AKAN’s share price increase to $5.58 on October 1 reflects market response to its diversification into telecommunications infrastructure alongside ongoing developments in its core cannabis operations. The March 10 share exchange agreement indicates a significant shift in the company’s equity structure toward First Towers stakeholders, which may impact existing shareholders through dilution while broadening the company’s asset base.

The October 1 prospectus signals an impending conversion of debt into equity, introducing the potential for additional dilution. As an emerging growth company, AKANDA must balance the raising of capital through convertible instruments with the interests of its shareholders. Its adherence to certain Canadian corporate governance practices, while listed on NASDAQ, could also affect governance dynamics and investor rights.

Market Position and Industry Context

In the medical cannabis sector, AKANDA utilizes its purpose-built indoor growing facility in Portugal to produce non-irradiated, high-purity flower and anticipates launching Cookies-branded genetics in 2023. The company distributes its products through digital pain clinics, prescribing physicians, and international partners.

The telecommunications segment, through First Towers & Fiber Corp., manages over 700 km of 5G dark fiber in central Mexico, supported by a 20-year lease with Telefónica. With Mexico being the second-largest wireless market in Latin America, valued at $81 billion, the company aims to address coverage gaps in 4G LTE and facilitate the rollout of 5G services, presenting expansion opportunities.

By integrating medical cannabis cultivation with telecommunications infrastructure, AKANDA positions itself within two regulated industries, seeking to mitigate sector-specific risks while capturing growth potential in digital health and connectivity.

tl;dr

On March 10, 2025, AKANDA CORP agreed to acquire First Towers & Fiber Corp., making it a wholly owned subsidiary and allocating 83.1 percent of the combined equity to First Towers shareholders. The company plans to discontinue UK distribution through Canmart Ltd. and continue developing THC/CBD facilities in British Columbia. On October 1, 2025, AKANDA filed a prospectus to register up to 18.8 million shares for conversion of US $12 million in notes at a floor price of $0.678. The future outlook includes launching Cookies-branded flower, expanding medical cannabis distribution channels, and scaling telecommunications infrastructure in Mexico’s 5G market.