Full Press Release Details
Unaudited Condensed Interim Consolidated Statements
of Financial Position
in United States Dollars)
| June 30, | December 31, | |||||||||||
| As at | Note | 2025 | 2024 | |||||||||
| ASSETS | ||||||||||||
| Current | ||||||||||||
| Cash | $ | 2,523,719 | $ | 3,838,650 | ||||||||
| Cash held in trust | 5,816 | 3,216 | ||||||||||
| Trade and other receivables | 7 | 4,097 | 370,537 | |||||||||
| Prepayments | 42,915 | 391,649 | ||||||||||
| Loans receivable | 12,16 | 990,688 | 451,529 | |||||||||
| Total Current Assets | 3,567,235 | 5,055,581 | ||||||||||
| Non-Current | ||||||||||||
| Property, plant and equipment | 9 | 2,443,588 | 2,339,182 | |||||||||
| Intangible assets | 11 | - | 15,827 | |||||||||
| Loans receivable | 12 | - | 503,493 | |||||||||
| Right-of-use assets | 10 | 204,206 | - | |||||||||
| Total Non-Current Assets | 2,647,794 | 2,858,502 | ||||||||||
| Total Assets | $ | 6,215,029 | $ | 7,914,083 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Current | ||||||||||||
| Trade and other payables | $ | 2,204,803 | $ | 2,982,499 | ||||||||
| Lease liability | 13 | 136,087 | - | |||||||||
| Loans and borrowings | 14 | 184,285 | 352,814 | |||||||||
| Due to related parties | 16 | 317,784 | 302,232 | |||||||||
| Total Current Liabilities | 2,842,959 | 3,637,545 | ||||||||||
| Non-Current | ||||||||||||
| Lease liability | 13 | 70,869 | - | |||||||||
| Total Non-Current Liabilities | 70,869 | - | ||||||||||
| Total Liabilities | 2,913,828 | 3,637,545 | ||||||||||
| Shareholders' Equity | ||||||||||||
| Share capital | 15 | 63,639,395 | 63,319,398 | |||||||||
| Other reserves | 3,370 | 24,423 | ||||||||||
| Accumulated deficit | ( 58,253,006 | ) | ( 57,459,061 | ) | ||||||||
| Accumulated other comprehensive loss | ( 2,088,558 | ) | ( 1,608,222 | ) | ||||||||
| Total Shareholders' Equity | 3,301,201 | 4,276,538 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,215,029 | $ | 7,914,083 |
Proposed Business Combination (Note 23)
Subsequent Events (Note 24)
The accompanying notes are an integral part of
these unaudited condensed interim consolidated financial statements.
Unaudited Condensed Interim Consolidated Statements
of Loss and Comprehensive Loss
in United States Dollars)
| Six months ended | ||||||||||||
| June 30, | ||||||||||||
| Note | 2025 | 2024 | ||||||||||
| Operating expenses | ||||||||||||
| Depreciation and amortization | 9,10 | $ | 84,788 | $ | 102,051 | |||||||
| Consulting and professional fees | 863,287 | 1,510,663 | ||||||||||
| Personnel expenses | 16 | 226,822 | 209,106 | |||||||||
| General and administrative expenses | 315,859 | 337,948 | ||||||||||
| Total operating expenses | 1,490,756 | 2,159,768 | ||||||||||
| Operating loss | ( 1,490,756 | ) | ( 2,159,768 | ) | ||||||||
| Other income (expenses): | ||||||||||||
| Finance income | 12 | 38,116 | - | |||||||||
| Finance expense | 13,14,16 | ( 17,749 | ) | ( 62,192 | ) | |||||||
| Foreign exchange gain (loss), net | 44,521 | ( 132,441 | ) | |||||||||
| Gain (loss) on debt settlement | 21,575 | ( 232,375 | ) | |||||||||
| Other income | - | 75,093 | ||||||||||
| Loss on sale of subsidiary | 5 | - | ( 165,625 | ) | ||||||||
| Write-off of holdback payable | 4 | - | 400,000 | |||||||||
| 86,463 | ( 117,540 | ) | ||||||||||
| Net loss from continuing operations | ( 1,404,293 | ) | ( 2,277,308 | ) | ||||||||
| Gain (loss) from discontinued operations | 5,6 | 589,292 | ( 405,582 | ) | ||||||||
| Net loss | $ | ( 815,001 | ) | $ | ( 2,682,890 | ) | ||||||
| Translation adjustment | 122,144 | 136,130 | ||||||||||
| Comprehensive loss | $ | ( 692,857 | ) | $ | ( 2,546,760 | ) | ||||||
| Loss per share from continuing operations - basic and diluted | 15 | $ | ( 2.02 | ) | $ | ( 15.07 | ) | |||||
| Loss per share - basic and diluted | 15 | $ | ( 1.17 | ) | $ | ( 17.76 | ) | |||||
| Weighted average common shares outstanding | 15 | 693,889 | 151,067 |
The accompanying notes are an integral part of
these unaudited condensed interim consolidated financial statements.
Unaudited Condensed Interim Consolidated Statements
of Shareholders' Equity
in United States Dollars)
| Note | Share capital | Other reserves | Accumulated deficit | Accumulated other comprehensive loss | Total | |||||||||||||||||||
| Balance, December 31, 2023 | $ | 51,020,121 | $ | 21,053 | $ | ( 53,363,032 | ) | $ | ( 1,507,034 | ) | $ | ( 3,828,892 | ) | |||||||||||
| Issuance of shares from private placement | 15 | 1,137,762 | 10,290,426 | - | - | 11,428,188 | ||||||||||||||||||
| Issuance of shares upon exercise of prefunded warrants | 15 | 10,287,056 | ( 10,287,056 | ) | - | - | - | |||||||||||||||||
| Cancelled shares | 15 | ( 1,445,188 | ) | - | - | - | ( 1,445,188 | ) | ||||||||||||||||
| Share issuance costs | ( 584,914 | ) | - | - | - | ( 584,914 | ) | |||||||||||||||||
| Fair value of RSUs redeemed at $ 25.69 per share | 15 | 1,547,703 | - | - | - | 1,547,703 | ||||||||||||||||||
| Net loss | - | - | ( 2,682,890 | ) | - | ( 2,682,890 | ) | |||||||||||||||||
| Translation adjustment | - | - | - | 136,130 | 136,130 | |||||||||||||||||||
| Balance, June 30, 2024 | $ | 61,962,540 | $ | 24,423 | $ | ( 56,045,922 | ) | $ | ( 1,370,904 | ) | $ | 4,570,137 | ||||||||||||
| Balance, December 31, 2024 | $ | 63,319,398 | $ | 24,423 | $ | ( 57,459,061 | ) | $ | ( 1,608,222 | ) | $ | 4,276,538 | ||||||||||||
| Issuance of shares from private placement | 15 | 320,000 | - | - | - | 320,000 | ||||||||||||||||||
| Impact of loss of control of Canmart | 6 | ( 3 | ) | ( 21,053 | ) | 21,056 | ( 602,480 | ) | ( 602,480 | ) | ||||||||||||||
| Net loss | - | - | ( 815,001 | ) | - | ( 815,001 | ) | |||||||||||||||||
| Translation adjustment | - | - | - | 122,144 | 122,144 | |||||||||||||||||||
| Balance, June 30, 2025 | $ | 63,639,395 | $ | 3,370 | $ | ( 58,253,006 | ) | $ | ( 2,088,558 | ) | $ | 3,301,201 |
The accompanying notes are an integral part of
these unaudited condensed interim consolidated financial statements.
Unaudited Condensed Interim Consolidated Statements
in United States Dollars)
| Six months ended June 30, | ||||||||||||
| Note | 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss from continuing operations | $ | ( 1,404,293 | ) | $ | ( 2,277,308 | ) | ||||||
| Net gain (loss) from discontinued operations | 589,292 | ( 405,582 | ) | |||||||||
| Net loss for the period | ( 815,001 | ) | ( 2,682,890 | ) | ||||||||
| Adjustments for non-cash items: | ||||||||||||
| Gain on loss of control of Canmart, net of cash surrendered and foreign currency translation adjustment | 6 | ( 12,999 | ) | - | ||||||||
| Depreciation and amortization | 9,10 | 83,862 | 104,000 | |||||||||
| Depreciation and amortization from discontinued operations | 9 | 926 | 261,501 | |||||||||
| Interest expenses | 13,14,16 | 17,749 | 81,021 | |||||||||
| Interest expenses from discontinued operations | 14 | - | 124,205 | |||||||||
| Interest income from Bridge loans | 12 | ( 38,116 | ) | - | ||||||||
| Fair value of RSUs granted and exercised | 15 | - | 1,547,703 | |||||||||
| Loss (gain) on settlement on debt | ( 21,575 | ) | 232,375 | |||||||||
| Loss on sale of subsidiary | - | 165,625 | ||||||||||
| Write-off of holdback payable | 4 | - | ( 400,000 | ) | ||||||||
| Working capital adjustments (net of amounts acquired/disposed): | ||||||||||||
| Trade and other receivables | 301,128 | ( 189,536 | ) | |||||||||
| Prepayments | 279,128 | ( 1,174,292 | ) | |||||||||
| Trade and other payables | ( 235,341 | ) | ( 203,044 | ) | ||||||||
| Due to related parties | 64,635 | ( 458,648 | ) | |||||||||
| Cash flows used in operating activities | ( 375,604 | ) | ( 2,591,980 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Additions to property, plant and equipment | - | ( 1,343,893 | ) | |||||||||
| Cash surrendered on sale of RPK | 5 | - | ( 105,175 | ) | ||||||||
| Cash proceeds from sale of subsidiary | 5 | - | 1,553,750 | |||||||||
| Loan repayment (receivable) | 12 | 347 | ( 632 | ) | ||||||||
| Cash surrendered on loss of control of Canmart | 6 | ( 174 | ) | - | ||||||||
| Cash flows provided by investing activities | 173 | 104,050 | ||||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from private placement | 15 | 320,000 | 9,398,086 | |||||||||
| Advances from (advances to) related parties | ( 578,604 | ) | 44,975 | |||||||||
| Repayment of advances from related parties | ( 62,596 | ) | ( 465,297 | ) | ||||||||
| Loans received | - | 65,282 | ||||||||||
| Loans repaid | ( 201,206 | ) | ( 104,920 | ) | ||||||||
| Lease payments | 13 | - | ( 300,000 | ) | ||||||||
| Cash flows provided by (used in) financing activities | ( 522,406 | ) | 8,638,126 | |||||||||
| Net increase (decrease) in cash and cash equivalents | ( 897,837 | ) | 6,150,196 | |||||||||
| Effects of exchange rate changes on cash and cash equivalents | ( 414,494 | ) | ( 212,089 | ) | ||||||||
| Cash and cash equivalents at the beginning of the period | 3,841,866 | 93,875 | ||||||||||
| Cash and cash equivalents at the end of the period | $ | 2,529,535 | $ | 6,031,982 |
The accompanying notes are an integral part of
these unaudited condensed interim consolidated financial statements.
Notes to the Unaudited Condensed Interim Consolidated
Financial Statements
in United States Dollars)
Akanda Corp. (the "Company")
is domiciled in Canada and was incorporated on July 16, 2021. The Company's registered office is 77 King Street West,
Suite 400, Toronto-Dominion Centre, Toronto Canada, Ontario, M5K 0A1.
Prior to the liquidation event on July
15, 2022 described below, the Company, through its indirectly held subsidiary, Bophelo Bio Science and Wellness (Pty) Ltd. is in the business
of cultivating and manufacturing cannabis biomass and medical cannabis products in Lesotho (specifically near Ts'akholo, in the
Mafeteng district of the Kingdom of Lesotho, Southern Africa), for export to international markets. At December 31, 2022, the Company
determined that it no longer controlled Bophelo Bio Science and Wellness (Pty) Ltd. as a result of the insolvent liquidation order signed
by the Lesotho Court on July 15, 2022 (note 21). As a result of the loss of control, the Company derecognized all assets and liabilities
at their book values on December 31, 2022 and wrote down all balances receivable from the entity to $nil. During the year ended December
31, 2022, the Company recorded a loss on loss of control of Bophelo Bio Science and Wellness (Pty) Ltd. of $2,085,624, which included
$739,947 of cash held by Bophelo Bio Science and Wellness (Pty) Ltd. The Company accounted for the operating results of Bophelo Bio
Science and Wellness (Pty) Ltd. as a discontinued operation during the years ended December 31, 2022 and 2021. At the date of these consolidated
financial statements, the Company believes that the liquidation of Bophelo Bio Science and Wellness (Pty) Ltd. is still ongoing.
The Company was incorporated for the
designed purpose of becoming the ultimate parent company of Cannahealth Ltd. ("Cannahealth"), through a reorganization of
entities with common control. The share purchase agreement became unconditional on or about November 3, 2021 and the Company acquired
the shares in the aforementioned entities from Halo Collective Inc. ("Halo").
On April 29, 2022, the Company, through
its wholly owned subsidiary, Cannahealth, acquired 100% of the Ordinary Shares of Holigen Limited ("Holigen") and its
wholly-owned subsidiary, RPK Biopharma Unipessoal, LDA ("RPK") from the Flowr Corporation (note 4).
On February 28, 2024, the Company incorporated
a new subsidiary - 1468243 B.C. Ltd.
On March 24, 2024, the Company completed
the transaction with Somai Pharmaceuticals Ltd. ("Somai") for the sale of RPK (note 5). The Company accounted for the operating
results of RPK which was a net loss of $827,620 as a discontinued operation during the year ended December 31, 2024 and has reclassified
the operating results of RPK as a discontinued operation for the year ended December 31, 2023.
Prior to the liquidation event on May
30, 2025 described below, the Company, through its subsidiary Canmart Ltd. ("Canmart"), is also in the business of sales and
distribution of cannabis-based products for medical use, which is based in the United Kingdom ("UK"). During the first quarter
of 2025, the Company evaluated the current state of Canmart and has determined to discontinue and cease it UK operation. The Company filed
for creditor's voluntary liquidation and had the winding up commenced on May 30, 2025 (note 6). As at June 30, 2025, the Company
no longer controlled Canmart and derecognized all assets and liabilities at their book values on May 30, 2025 and wrote down all balances
to $nil. The Company accounted for the operating results of Canmart which was a net loss of $26,013 as a discontinued operation during
the six months ended June 30, 2025 and has reclassified the operating results of Canmart as a discontinued operation for the six months
ended June 30, 2024.
The Company's condensed interim
consolidated financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its
assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company incurred a net cash outflow
of $375,604 from operating activities for the six months ended June 30, 2025. As of June 30, 2025, the Company had working capital
of $724,276 and has accumulated losses of $58,253,006. The continuing operations of the Company are dependent upon its ability to
raise further cash funding by way of issuing debt and/or equity.
Notes to the Unaudited Condensed Interim Consolidated
Financial Statements
in United States Dollars)
The Company is an early-stage company
and is primarily dependent on externally provided financing to continue as a going concern. Additional funds will be required to enable
the Company to pursue such an initiative and the Company may be unable to obtain such financing on satisfactory terms. Furthermore, there
is no assurance that the Company will be profitable. Management intends to finance operating costs over the next twelve months with its
cash on hand, and/or additional cash that will be generated from operations. The Company does not at this stage have any firm plans or
commitments regarding further financing.
These uncertainties may cast significant
doubt upon the Company's ability to continue as a going concern. These condensed interim consolidated financial statements do not
include any adjustments relating to the recoverability and classification of assets and liabilities which might be necessary should the
Company be unable to continue in existence.
These condensed interim consolidated
financial statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards ("IFRS")
as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial
Reporting Interpretations Committee ("IFRIC").
These condensed interim consolidated
financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial
Reporting and have been prepared using the same accounting policies and methods of application as those used in the Company's audited
consolidated financial statements for the year ended December 31, 2024.
These condensed interim consolidated
financial statements have been prepared on an accrual basis, except for cash flow information, and are based on the historical cost, modified
where applicable and related to the valuation of certain financial assets and financial liabilities to fair value.
The Company and its subsidiaries are
measured using the currency of the primary economic environment in which each subsidiary operates - the functional currency. The Euro
is the functional currency of Holigen and Cannahealth, Great British Pounds is the functional currency of Canmart and Canadian Dollars
is the functional currency of 1371011 and Akanda while the United States Dollars is its reporting currency.
These condensed interim consolidated
financial statements are prepared and presented in United States Dollars ("USD" or "$"), which is the Company's