Akanda (NASDAQ: AKAN) stock soared almost 165% in pre-market trading Friday, with investors largely shrugging off news of the company receiving a non-compliance notice from Nasdaq.
Akanda (AKAN) recently announced that it received a deficiency notification letter from the Nasdaq Listing Qualifications Department on May 14, 2024. The notification cites the company’s failure to meet the minimum stockholders’ equity requirement stipulated in Nasdaq Listing Rule 5550(b)(1). This rule mandates that companies listed on the Nasdaq Capital Market maintain a minimum stockholders’ equity of $2,500,000.
According to Akanda’s Form 20-F for the fiscal year ending December 31, 2023, the company reported stockholders’ equity of negative $3,828,892, falling significantly short of the required threshold. Additionally, Akanda does not meet Nasdaq’s alternative compliance standards, based on the market value of listed securities or net income from continuing operations.
Compliance Plan and Timeline
Under Nasdaq regulations, Akanda has a 45-day window, expiring on June 28, 2024, to submit a plan outlining its strategy to regain compliance. If Nasdaq accepts the company’s plan, it may grant Akanda an extension of up to 180 days from the date of the notification letter to meet the required standards.
Akanda is actively evaluating its options to address the deficiency and intends to submit a comprehensive compliance plan within the stipulated timeframe. The company will keep stakeholders informed of its progress and any developments in the compliance process.
Current Trading Status
Despite the deficiency notice, Akanda’s common shares will continue to trade on the Nasdaq Capital Market under the symbol “AKAN.” This announcement does not impact Akanda’s listing at this time.
In a press release, Katie Field, Interim Chief Executive Officer of Akanda, emphasized the company’s commitment to resolving the issue, stating,
“We are taking immediate steps to address this matter and are focused on actions that will lead to regaining compliance with Nasdaq’s listing requirements. We appreciate the continued support of our investors during this period.”
Akanda (NASDAQ: AKAN) Stock Price Action
As of 08:20 a.m. (Eastern Time) Friday, AKAN stock traded at $0.35, marking a 163.92% increase compared to the previous trading session.
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