0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
The Offering
Company Overview
Akanda Corp. (hereinafter referred to as “Akanda” or “The Company”) is a cannabis cultivation, manufacturing, and distribution company whose mission is to provide premium quality medical cannabis products worldwide. The company cultivates and processes natural cannabis at facilities in the Kingdom of Lesotho, Africa, and intends to supply medicinal-grade cannabis biomass, cannabis flower, and cannabis concentrates to wholesalers in international markets.
Legal Structure of the company
Source: IPO Prospectus
Key Highlights
Primary product offering: The company's primary product offering includes Cannabis biomass, Cannabis flower, and Cannabis concentrates. The company seeks to sell its products to international distributors and medical cannabis customers in the UK.
Use of Proceeds: The company estimates that the net proceeds from this offering will be approximately $14.2 million, assuming an initial public offering price of $4.00 per common share-post deduction of underwriting discounts, commissions, and estimated offering expenses. The company intends to use these proceeds for acquisitions, capital expenditures (including without limitation, the construction of their planned greenhouse, post-harvest drying and extraction facilities at Bophelo), working capital, and general corporate purposes.
Dividend Policy: Since incorporation, the company has never paid any dividends and does not intend to pay dividends on its Common Shares in the near future.
Financial Highlights
Akanda is an early-stage company with minimal operating history. The company has no trading related operations to date, except for those transactions incurred in relation to its function as a holding company for group entities. During the nine months ended September 30, 2021, the company incurred legal expenses of $39,474 because of corporate activity and transaction-related legal fees in respect to the acquisition of Cannahealth Limited.
Key Management Highlights
Source: IPO Prospectus
Associated Risk (High)
Investment in the IPO of Akanda is exposed to a variety of risks such as:
Conclusion
The company is an early-stage, emerging growth company with a limited operating history and minimal revenues. Moreover, the leadership team will require funding from this offering to expand and further develop their operations. Furthermore, the broader trend in the exchange-listed cannabis stocks is bearish. A majority of them have plummeted significantly over the past year and are trading well below their crucial long-term support levels.
Therefore, given the weak financial background of the company, bearishness in the overall cannabis industry, uncertainty arising from the escalated geopolitical tensions,we have concluded that the IPO of Akanda Corp. is not very attractive at the current offer price and have assigned a "Watch" rating to this IPO.
*Please note that an IPO can be postponed or put on Hold at the discretion of the company or regulatory authority.
Disclaimer
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.
Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.
Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.