Akanda Corp. confirmed that a 1-for-3.125 reverse stock split became effective at the start of trading on August 26, 2025. Shareholders had already approved the move earlier this year, with the Board finalizing the split ratio earlier this month.
The adjustment will reduce Akanda’s outstanding common shares from approximately 2.27 million to around 728,000, consolidating every 3.125 existing shares into one new share. While the total number of shares will shrink, the proportional ownership of individual shareholders remains unchanged, aside from rounding adjustments for fractional shares.
For investors, reverse splits often indicate a company’s efforts to stabilize share pricing and maintain Nasdaq listing compliance. It also suggests that Akanda’s management is working to align its capital structure with upcoming business developments.
Impact on Shareholders and Convertible Securities
The reverse split applied equally to all shareholders. Holders of options, warrants, and convertible securities saw their instruments adjusted proportionately. No cash was issued for fractional shares, with fractions rounded down to the nearest whole number.
Shareholders holding shares through brokers or banks saw the changes automatically in their accounts. Those with physical stock certificates will receive instructions from Vstock Transfer, the exchange agent overseeing the split.
Acquisition of First Towers & Fiber Corp.
Alongside its capital restructuring, Akanda closed the acquisition of First Towers & Fiber Corp. on August 21, 2025, making it a wholly owned subsidiary. The transaction was completed under the terms of a Share Exchange Agreement originally signed in March 2025.
The deal involves the planned issuance of convertible Class A and Class B Special Shares to former First Towers shareholders. These will be granted only after Akanda secures shareholder approval at upcoming special meetings scheduled for late August and beyond. One shareholder instead received a 24-month promissory note equal to the value of its First Towers shares.
Importantly, Akanda did not issue any new common shares upon closing the acquisition, preserving the integrity of its current share structure while awaiting shareholder authorization for the special share classes.
Strategic Outlook for Investors
For potential and current investors, these developments highlight two key themes:
- Capital Restructuring: The reverse stock split may help the company present a stronger share price profile, potentially improving its standing on Nasdaq and attracting institutional attention.
- Growth Ambitions: By acquiring First Towers and reaffirming its Canadian cultivation project in British Columbia, Akanda is signaling its commitment to building a more diversified foundation for future cannabis production.
At this stage, Akanda remains pre-revenue, with no commercial cultivation yet at its Canadian facility. However, the dual strategy of acquisition and restructuring suggests management is positioning the company for long-term participation in the cannabis sector.
Key Takeaway for Shareholders
While short-term volatility is possible around the reverse split date, Akanda’s recent moves reflect an effort to stabilize its stock, expand its business base, and prepare for shareholder votes that could unlock further equity issuances. Investors should closely monitor the August 29, 2025, Special Meeting of Shareholders for updates on the approval of Class A Special Shares, as well as future announcements regarding the Canadian cultivation project.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
