LONDON–(BUSINESS WIRE)–Nov 16, 2022–
Medical cannabis cultivation company Akanda Corp. (“Akanda” or the “Company”) (NASDAQ: AKAN) (Frankfurt: Y23) asserts a shift in strategy to become a significant player as a premium EU GMP cultivator in Europe, targeting 10% market share in the German market short-term medical cannabis flowers. Akanda also has a cultivation and dispensary license agreement with Cookies® in Portugal. These steps have placed Akanda on a solid footing to serve future regulated adult markets in Europe once established.
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Akanda is pleased to announce a new investor presentation which can be found on our website: https://www.akandacorp.com/investors/presentations/default.aspx (Photo: BusinessWire)
The company recently announced its first shipment and first sale to Germany from its premium EU GMP certified medical cannabis indoor cultivation operation in Portugal.. An agreement has been reached to deliver at least 1,000 kilograms of high-quality medical cannabis flower to Germany via Cansativa, one of the leading medical distributors in Germany. The EU GMP premium flower supply agreement with Cansativa is one of the largest in the European medical cannabis industry. The German Minister of Health recently issued initial guidelines for the legalization of adult use in the country. While questions remain around the final implementation, their action serves as a beacon for other European countries considering legalization, such as Portugal. Akanda is poised to supply these future adult markets with top quality cannabis flower when the laws are established.
“Portugal-based Akanda’s EU GMP-certified medical cannabis cultivation operation is a one-of-a-kind 20,000 square foot premium indoor cultivation site, and the 7 million square foot GACP outdoor site square (180+ acres) of the company in Portugal is one of the largest outdoor GACP locations in Europe.Akanda is dedicated to the execution of supply agreements and the delivery of high potency medical cannabis flowers. THC, non-irradiated and top quality in the German market Our premium medical cannabis flower has been tested for up to 28% THC, and our EU GMP compliant indoor cultivation has yielded around 1,200 kilograms of flowers. Akanda’s Portuguese operations are expected to be operationally profitable by mid-2023,” commented Akanda CEO Tej Virk.
Tom Flow, Chief Operating Officer of Akanda, added: “The company now has Cookies genetics in Portugal and in production. Akanda plans to release a selection of the best cookie strains in 2023. The company is also evaluating plans to expand grow rooms at the Sintra indoor facility and add custom grow pods to our Aljustrel site to quickly increase the production of premium indoor cannabis to meet increased demand from EU markets. »
Akanda’s change in strategy comes after considering the unauthorized initiation of liquidation proceedings regarding Bophelo Bio Science & Wellness (Pty) Ltd. (“Bophelo”), the Company’s subsidiary in Lesotho, Africa. As previously announced, on July 15, 2022, a court in Lesotho issued an order appointing Mr. Chavonnes Cooper of Cape Town, South Africa as liquidator of Bophelo to maintain the value of assets owned or managed by Bophelo. Akanda’s position is that such a court order resulted from a request brought by Louisa Mojela, the former executive chairwoman of Akanda, and Ms. Mojela’s trust, Mophati Matsoso Development Trust, without the knowledge of the society. Mrs. Mojela acted unilaterally in her own interests without warning or notice, in breach of contract, of fiduciary duty and in a manner likely to discredit the company or group companies or to be materially prejudicial to the interests of the company or of the Business group. After careful consideration, Akanda has made the decision to cease its involvement in Bophelo’s operations in Lesotho and to assert its rights and those of its affiliates as a creditor of Bophelo instead of seeking to challenge the liquidation proceedings as previously announced. .
Additionally, the company terminated Ms. Mojela’s services at the end of July 2022. On October 24, 2022, Ms. Mojela served Akanda and its wholly owned subsidiary Canmart Ltd. a civil action alleging wrongful termination of his service contract. Akanda and Canmart Ltd. intend to vigorously defend their position and seek compensation through appropriate legal channels.
Mr. Virk continued: “The company was forced out of Lesotho due to the unauthorized liquidation of Bophelo. However, having a presence in Africa has always been about building for the long term and having a social impact on the communities of Lesotho. Fortuitously, we have seen an increased demand from German buyers for products made in Portugal compared to Lesotho due to the quality and changing European cannabis import regulations. As such, Akanda proves that he can more than offset this African culture operation with his Portuguese operation to meet German demands. request.”
In conclusion, Mr. Virk said, “Financially, Akanda, without Bophelo, is on an accelerated path to operational profitability and positive free cash flow. As a team, we focus on our core markets: Germany and the UK. negotiate a number of commercial agreements, all of which will use our Portuguese and UK activities. »
The Company is pleased to announce a new Investor Presentation which can be viewed on our website at: https://www.akandacorp.com/investors/presentations/default.aspx.
About Akanda Corp.
Akanda is an international medical cannabis and wellness platform company that seeks to help people lead better lives through greater access to high-quality cannabis products. Akanda’s portfolio includes Holigen, a Portugal-based grower, manufacturer and distributor with a premium EU GMP certified indoor cultivation facility; and CanMart, a UK-based fully licensed pharmaceutical importer and distributor supplying pharmacies and clinics in the UK. The Company’s seed-to-patient supply chain also includes partnerships with California-based Cookies®, one of the world’s most recognized cannabis companies; Cansativa Group, one of Germany’s leading importers and distributors of medical cannabis; and Cellen Life Sciences’ Leva Clinic, one of the first fully digital pain clinics in the UK.
Caution Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act. . of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or of current condition, but represent only Akanda’s beliefs regarding future events, plans or objectives, many of which, by their nature , are inherently uncertain. and out of Akanda’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates”, “expects” or “does not expect”, “is expected”, ” budget”, “planned”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or may contain statements that certain actions, events or results “may”, “could”, “would”, “could” or “will be taken”, “will continue”, “will occur” or “will be realized”. Forward-looking information may relate to anticipated events or results, including, but not limited to, business strategy, product development, and sales and growth plans.The forward-looking information and forward-looking statements contained in this press release are made to the date of this press release, and Akanda does not undertake to update forward-looking information and/or forward-looking statements contained or referenced herein, except in compliance with applicable securities laws.
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KEYWORD: USA UK NORTH AMERICA PORTUGAL EUROPE GERMANY
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SOURCE: Akanda Corp.
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PUBLISHED: 11/16/2022 08:00 AM / DISK: 11/16/2022 08:02 AM