What Caused Akanda (AKAN) Shares to Jump 45% in After-Hours Trading?
Stock Performance: Akanda Corp. (NASDAQ: AKAN) shares surged 44.86% in after-hours trading to $1.37, despite closing down 6.33% at $0.95 earlier in the day. The stock has declined 82.08% year to date.
Share Consolidation Approval: Shareholders approved a proposal for share consolidation, allowing the board to consolidate shares at ratios between 2-for-1 and 100-for-1, to be executed within 12 months.
First Towers Transaction: The issuance of 4.77 million Class B Special Shares to former First Towers & Fiber Corp. shareholders was authorized, following Akanda's acquisition of the telecommunications company.
Debt Settlement Issuance: A proposal was approved to issue 732,384 common shares related to debt settlement agreements, along with potential issuance of up to 27.3 million common shares from convertible promissory notes totaling $4.90 million.
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Akanda (AKAN) Signs $7M Private Placement Deal Expected to Close by January 21, 2026
- Funding Initiative: Akanda is set to raise $7 million through a 12-month convertible promissory note private placement with institutional investors, aimed at bolstering marketing efforts, working capital, and general corporate needs, thereby enhancing financial flexibility.
- Debt Repayment: The proceeds will be allocated towards debt repayment, which is expected to improve the company's capital structure, reduce financial risk, and enhance future financing capabilities.
- Reverse Stock Split: Akanda has announced a 1-for-5 reverse stock split intended to increase the share price, attract more investor interest, and improve market liquidity.
- Market Outlook: The transaction is expected to close by January 21, 2026, and if successfully executed, will provide the necessary funding support to help achieve the company's long-term strategic objectives.
Dow Gains More Than 100 Points as Lululemon Reports Strong Q3 Earnings
Market Performance: U.S. stocks showed mixed results, with the Dow Jones gaining 0.24% while the NASDAQ and S&P 500 fell by 0.34% and 0.13%, respectively.
Lululemon's Strong Earnings: Lululemon Athletica reported better-than-expected third-quarter earnings of $2.59 per share, surpassing estimates, and raised its full-year guidance.
Notable Stock Movements: cbdMD Inc shares surged 101% after compliance news, while Applied Therapeutics Inc saw a 48% drop following acquisition plans.
Global Market Trends: European and Asian markets closed higher, with the eurozone's STOXX 600 up 0.2% and Japan's Nikkei gaining 1.37%.
