Akanda Corp. (NASDAQ: AKAN) stock jumped 5% in the pre-market trading Monday following its announcement to explore Bitcoin, blockchain, and AI applications in the cannabis sector.
Akanda Corp. (AKAN) has revealed its plans to delve into technological advancements, focusing on Bitcoin, blockchain, and artificial intelligence (AI) applications. This move aims to tackle the banking challenges faced by the cannabis sector while simultaneously enhancing quality control and supply chain management.
The company envisions cryptocurrencies, particularly Bitcoin, as a promising alternative to traditional banking for cannabis businesses, which often encounter difficulties accessing financial services. By leveraging decentralized blockchain technology, the company sees an opportunity to facilitate peer-to-peer transactions and enable self-banking capabilities within the cannabis sector.
Furthermore, blockchain technology holds promise in improving the integrity of Certificates of Analysis (COAs), vital for verifying the quality and safety of cannabis products. By implementing blockchain, Akanda aims to establish a secure and transparent method for tracking COAs throughout the supply chain, ensuring product authenticity and compliance.
In addition to blockchain, Akanda is exploring the potential of AI in optimizing cannabis strain selection and cultivation. AI-driven solutions could streamline strain selection processes, optimize growing conditions, and even pave the way for developing custom cannabis strains tailored to specific medical conditions.
Akanda’s $5 Million Public Offering
The announcement comes on the heels of Akanda’s successful closure of a $5 million public offering. With this capital infusion, Akanda plans to expand its presence in the global cannabis market through its UK subsidiary, Canmart, which specializes in importing and distributing Cannabis-Based Products for Medicinal use (CBPMs). In addition, the company is actively progressing with the Gabriola Green Project in Canada, aimed at manufacturing THC and CBD products.
The Interim CEO and Executive Director, Katie Field, expressed confidence in the company’s new strategic direction, highlighting improved cash reserves, plans to reduce debt, and expansion into supportive technological sectors beyond the UK market.
The European medical cannabis industry presents a lucrative growth opportunity for Akanda, with sales expected to surpass €550 million by 2023 and projected to rise to €1.6 billion by 2027 following expansion in Germany, the Czech Republic, Switzerland, and the Netherlands markets.
Akanda (NASDAQ: AKAN) Stock Reaction
AKAN stock soared 29.29 % in the extended trading hours Thursday after closing the regular trade at $0.12. The traders had exchanged hands with 80,335,776 (80.33 million) shares compared to the average daily trading volume of 2.14 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
