Akanda Corp is a cannabis cultivation manufacturing and distribution company headquartered in Toronto Canada. The company was incorporated in the Province of Ontario Canada on July sixteen twenty twenty one in connection with the plan of Halo to reorganize its medical cannabis market focused international business assets. In September twenty twenty one Akanda entered into a share purchase agreement with Halo a publicly traded vertically integrated multinational cannabis…
Akanda Corp is a cannabis cultivation manufacturing and distribution company headquartered in Toronto Canada. The company was incorporated in the Province of Ontario Canada on July sixteen twenty twenty one in connection with the plan of Halo to reorganize its medical cannabis market focused international business assets. In September twenty twenty one Akanda entered into a share purchase agreement with Halo a publicly traded vertically integrated multinational cannabis company. Pursuant to that agreement Akanda acquired all the issued and outstanding equity interests of Cannahealth Limited a Republic of Malta company. At the closing of the Cannahealth acquisition on November three twenty twenty one Cannahealth owned all the issued and outstanding equity interests of Canmart and Bophelo Holdings which owned all the issued and outstanding equity interests of Bophelo. As a result both Bophelo and Canmart became indirect wholly owned subsidiaries of Akanda. As consideration for the acquisition Akanda issued sixteen thousand four hundred seven common shares to Halo at a price of eight hundred dollars per share. This resulted in Halo owning approximately sixty eight point three percent of all outstanding common shares at the closing. Akanda intends to expand its cultivation operations and develop sales channels for its cannabis products through its subsidiaries and through its option to acquire farmland in British Columbia.
Akanda currently generates limited revenue primarily from asset sales licensing agreements and option payments related to its development projects. The company earned proceeds from the sale of its Portuguese subsidiary RPK for two million United States dollars. In addition to the sale price Somai agreed to assume up to one million euros of current liabilities and RPK's debt with the senior secured lender bank Caixa Agricola. Historically Akanda derived income from cooperation agreements such as the arrangement with Cansativa GmbH to supply dried flowers to German pharmacies. Under that agreement all pharmacies in Germany were able to purchase these products through the Cansativa platform. Akanda also earned revenue from a license agreement with the international cannabis lifestyle brand Cookies. The multi year agreement enabled the company to pursue medical and future adult use opportunities in Europe with what it believed was one of the best known cannabis brands and highest quality genetics in the world. These agreements have since been terminated as the company exited its European business. Akanda has received option payments and milestone payments associated with its British Columbia farming property including a payment triggered by the issuance of a hemp license from Health Canada. The company has not yet commenced commercial product sales from its cultivation sites.
Akanda operates in a highly competitive cannabis industry where several large established players dominate the market. In the THC segment competitors include Aurora Cannabis Canopy Growth Aphria CannTrust Holdings and Aleafia Health. In the CBD segment competitors include Charlotte's Web Cresco Labs and the Valens Company. The company seeks to differentiate itself by focusing on low cost production and high yield cultivation. Akanda has previously held an EU GMP certified indoor grow facility in Portugal which allowed it to produce high THC premium cannabis for the European market. The facility comprised a twenty thousand square foot indoor area and an additional one hundred eighty plus acre outdoor location in Aljustrel. In twenty twenty Holigen grew more than twenty high THC strains at the Aljustrel facility making it the largest outdoor medical cannabis grow in the EU at that time. Akanda has secured a hemp license from Health Canada for its British Columbia project which positions it to participate in both the medical and non medical cannabis markets as well as the emerging hemp sector. The company believes that keeping costs down while delivering high yields is essential to succeed in the crowded marketplace.
Akanda has served a variety of customers through its former subsidiaries and partnership arrangements. Bophelo supplied medical cannabis products to wholesalers in international markets aiming to meet demand for regulated cannabis in regions outside Canada. The cooperation with Cansativa GmbH allowed German pharmacies to purchase dried flowers from Akanda's indoor grow facility in Sintra Portugal. Under that agreement the company supplied product that met the quality standards required for sale in the German medical cannabis program. The license agreement with Cookies enabled the company to pursue medical and future adult use opportunities in Europe under a well known brand that has strong consumer recognition. Following the sale of RPK to Somai the company transferred its Portuguese cultivation assets to that buyer which assumed responsibility for ongoing production and distribution. As Akanda shifts its focus to the British Columbia property it has not yet established a customer base for its planned THC CBD and hemp products. The company intends to develop sales channels once cultivation begins and hopes to attract licensed producers distributors and retailers in the Canadian market. Akanda also expects to engage with health care providers and patients who may benefit from its medical cannabis offerings.