Full Press Release Details
Akanda Announces $7.0 Million Convertible Note
Toronto, Ontario, January 20, 2026 (Newsfile)
- Akanda Corp. ("Akanda" or the "Company") (NASDAQ: AKAN) today announced the execution of a securities purchase
agreement with institutional investors for the purchase and sale of 12 month, convertible promissory notes for an aggregate purchase price
of $7.0 million, in a private placement transaction. The closing of the transaction is expected to occur, subject to customary closing
conditions, on January 21, 2026.
The Company shall use the proceeds from the sale
of the notes for (i) marketing purposes of up to $2.3 million, (ii) working capital and general corporate purposes of approximately $2.6
million and (iii) up to $2.1 million to be used for debt.
Univest Securities, LLC acted as the exclusive
placement agent in connection with the offering. Ruskin Moscou Faltischek PC acted as transaction and securities counsel to the Company.
The notes and the common shares issuable upon
the conversion of the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and, until
so registered, may not be offered or sold in the United States or any state absent registration or an applicable exemption from registration
Additional details regarding the notes and the
transaction will be available in the Company's Form 6-K, which will be filed with the U.S. Securities and Exchange Commission and
available at www.sec.gov.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains "forward-looking
statements." Such statements which are not purely historical (including, but not limited to statements that contain words such as
"will," "believes," "plans," "anticipates," "expects," "intends,"
"would," "could" and "estimates") are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future, including but not limited to, post-closing obligations of the Company
with respect to the Transaction.
Important factors, among others, that may affect
actual results or outcomes include: (i) changes in domestic and foreign business, market, financial, political and legal conditions; (ii)
failure to realize the anticipated benefits of the Company's acquisition of First Towers and Fiber Corp. (the "Transaction");
(iii) the limited operating history of the Company and its subsidiaries; (iv) the ability of the Company to grow and manage its growth
effectively; (v) the ability of the Company to execute its business plans; (vi) estimates of the size of the markets for the Company's
products and services; (vii) the rate and degree of market acceptance of the Company's products and services; (viii) the Company's
ability to identify and integrate acquisitions; (ix) future investments in technology and operations; (x) potential litigation involving
the Company; (xi) risks relating to the uncertainty of the projected financial information with respect to First Towers; (xii) the effects
of competition on the Company's businesses; (xiii) developments and changes in laws and regulations; (xiv) the impact of significant
investigative, regulatory or legal proceedings; (xv) general economic and market conditions impacting demand for the Company's products
and services; (xvi) the ability to meet Nasdaq's listing standards; (xvii) the ability the Company to issue equity or equity-linked
securities in connection with the Transaction or in the future; (xviii) the ability of the Company to manage its significant debt load
and liabilities; (xix) such other risks and uncertainties as are discussed in the Company's Annual Report on Form 20-F filed with
the SEC or in other documents the Company files from time to time with the SEC. The Company expressly disclaims any obligations or undertaking
to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's
expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Actual results could differ from those projected
in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this press release,
and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ
from those projected in the forward-looking statements, except as required by law. Although the Company believes that the beliefs, plans,
expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations
or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the
risk factors disclosure outlined in the Company's reports and statements filed from time-to-time with the Securities and Exchange