Akanda Corp.'s (NASDAQ:AKAN) shares soared shortly after the company's Nasdaq trading debut on Tuesday, less than a year after the cannabis company was formed.
The London-based Akanda priced 4 million common shares at $4 per share for proceeds of $16 million in a deal led by underwriter Boustead Securities LLC.
The stock traded up as high as $31 at one point, before falling back to $12.27 in afternoon trading.
CEO Tej Virk said interest around the IPO stems partly from Akanda as a “scarcity play” in that it is the first UK cannabis company with African operations to list on the Nasdaq. Akanda cultivates and processes natural cannabis at its facilities in the Kingdom of Lesotho, Africa.
Milestone
“Becoming the first UK cannabis company with African operations to list on the Nasdaq is an important milestone for our Company and the industry,” Virk said. “Now, with new capital and increasing patient access across the UK and Europe, Akanda is well-positioned to continue on its mission of helping people lead better lives through high-quality and affordable products."
According to its IPO filing, Akanda intends to supply medicinal-grade cannabis biomass, cannabis flower and cannabis concentrates to wholesalers in international markets as well as sell medical cannabis-based products to the domestic market in the UK.
Demand for cannabis products are on the rise in Europe, especially as Germany moves closer to legalizing adult-use cannabis and medical programs around the region expand.
Virk said another appeal of the company is its seven-member board of directors, four of whom are women.
Price Action
Akanda closed up 162.50% to close at $10.50 per share on Tuesday.
