Akanda shares surge 20.74% intraday after closing $7 million convertible note offering to fund operations and reduce debt.

Akanda surged 20.74% intraday after announcing the completion of a $7 million convertible note offering in a private placement with institutional investors. The financing, intended to address liquidity needs and reduce debt, follows the company’s recent acquisition of First Towers and Fiber Corp. and a 1-for-5 reverse stock split. The proceeds will allocate $2.3 million to marketing, $2.6 million to working capital, and $2.1 million to debt reduction, addressing concerns over cash burn despite 183.67% year-over-year revenue growth. The transaction, led by Univest Securities, provides critical funding for the micro-cap cannabis firm, currently trading at $1.35 with a $0.2 million market cap, and aligns with its strategic focus on operational expansion and debt management.