Akanda Wraps Up $5M Private Placement, Will Distribute Cannim Cannabis Products Across UK Via CanMart

Akanda Corp. announced on Wednesday that it has secured $5.31 million in financing through a private placement of its securities.

The London-based company closed the transaction and plans to use the net proceeds for working capital and general corporate purposes.

Tej Virk, Akanda’s CEO and director said the financing provides essential capital to accelerate its plans to build its seat-to-patient business model.

“In the UK, we are building out our network of pharmacies, clinicians, and other innovative channels as we seek to democratize access to medical cannabis for patients throughout the United Kingdom,” Virk said. “In Lesotho, we are putting the finishing touches on a cultivation expansion project which is expected to be completed over the coming months.“

Boustead Securities, LLC served as exclusive placement agent for the Akanda private placement offering and has accepted warrants as partial remuneration in addition to a cash fee.

The move follows the closing of the share purchase transaction with Halo Collective Inc. HALO HCANF, under which each of Bophelo Bio Science & Wellness Pty. Ltd. and CanMart Ltd. were acquired by Akanda, thus creating a new company focused on medical cannabis for international markets.

Akanda’s CanMart To Distribute Cannim Cannabis Products Across Britain

In the meantime, on Tuesday, Akanda revealed that its wholly-owned subsidiary, CanMart Ltd., had entered into a distribution deal with Australia-based Cannim to bring the award-winning Lumir range of medical cannabis products to UK patients.

Under the terms of the five-year agreement, CanMart will import and distribute Cannim’s full-spectrum cannabis oil products.

Virk said that UK-based patients will now have access to “Cannim’s high-quality Jamaica-grown medical cannabis products for the first time,” calling the deal “another step” in the company’s “effort to establish an international supply chain based on a unique ‘open marketplace’ model that provides patients with maximum choice.”

Stuart Marsh, Cannim’s chief commercial officer, agreed that the company's expansion is essential.

“The UK is an important link in a string of new market entries obtained by Cannim in recent months, including securing access to the burgeoning German medicinal cannabis market in August, launching into Australia under the Hummingbud brand in September,” Marsh said.

Photo: Courtesy of Matteo Paganelli on Unsplash