Akanda Corp. filed an amended registration statement for a public offering of up to 10,869,565 common shares and an equal number of pre-funded warrants. The offering is expected to raise approximately $15 million in gross proceeds, based on an assumed price of $1.38 per share.
Akanda has shifted its focus from cannabis to its telecommunications subsidiary, First Towers, in Mexico. The company plans to use approximately $14.55 million in net proceeds for capital expenditures, working capital, and general corporate purposes.
Akanda may allocate up to $3 million for marketing and investor relations. Another $575,000 is earmarked for debt repayment.
The filing raises substantial doubt about the company’s ability to continue as a going concern. Akanda said its current cash reserves could support operations for approximately five months without the new funding.