Akanda launches with two key assets, CanMart and Bophelo, bringing pharmaceutical grade cannabis from Africa to supply UK, European and other international markets
Akanda Corp. ("Akanda" or the “Company”) today announced that it has completed the acquisition of Bophelo Bio Science & Wellness (Pty) Ltd. (“Bophelo”) and CanMart Ltd. (“CanMart”) from Halo Collective Inc. ("Halo") (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN). We believe that the acquisition of these two key pieces of the international medical cannabis supply chain positions Akanda to be a leading player in the emerging international medical cannabis industry.
With the close of this transaction, Akanda is set up to reach international markets through multiple channels, including through CanMart, a licensed UK-based importer and distributor, Cantourage, one of Europe’s leading EU GMP providers of medical cannabis, as well as through other progressive parts of the supply chain.
“Today marks a major step towards Akanda’s establishment as an international medical cannabis company helping patients around the world lead better lives,” commented Tej Virk, CEO and Director of Akanda. “At our GACP-certified Bophelo campus in Lesotho with access to 200 hectares of land, we’re leveraging the country’s ideal growing conditions and exceptional talent pool to produce medical cannabis of the highest quality at an extremely competitive cost. We believe we have one of the industry’s best platforms to meet patient needs and gain market share in the rapidly growing international cannabis market.”
In accordance with the terms of the agreement, Akanda has purchased 100% of the issued and outstanding shares of Canahealth Limited, a company registered in Malta which holds the Bophelo and CanMart assets, from Halo in exchange for 13,129,212 common shares in the capital of Akanda ("Akanda Shares"). Akanda also issued a secured convertible debenture (the “Debenture”) to Halo in the principal amount of US$6.6 million in exchange for acquiring all outstanding indebtedness owed by Bophelo & CanMart to Halo. The Debenture bears an interest rate of 1% annually, which may be paid in the form of Akanda Shares at the applicable conversion price, and it will be automatically converted into Akanda Shares upon certain liquidity events occurring within six months from the date of the Debenture, including an initial public offering of Akanda Shares on a stock exchange, an amalgamation, arrangement, merger, reverse takeover, reorganization or other similar transaction of Akanda with or into any other person, or a sale or conveyance of all or substantially all of the property and assets of Akanda. The Debenture is also convertible into Akanda Shares, at the option of Akanda, at any time prior to the maturity date. As a result, Halo owns approximately 68.3% of the issued and outstanding Akanda Shares.
About Akanda Corp.
Akanda is an international medical cannabis company cultivating cannabis of the highest quality at scale, leveraging trusted brands, at a low-cost compared to many of its competitors. Akanda’s initial portfolio includes Bophelo Bioscience & Wellness, a GACP certified cultivation and processing campus in the Kingdom of Lesotho in Southern Africa, and CanMart, a UK-based fully approved pharmaceutical importer and distributor which supplies pharmacies and clinics within the U.K.
Bophelo operates a campus in the Kingdom of Lesotho focused on the cultivation and production of medical cannabis products for international export. Akanda believes Bophelo to be one of the largest licensed marijuana cultivation sites in the world with up to a maximum of 200 hectares of canopy. Through partnerships and licensing agreements with award-winning seed producers, including DNA Genetics, Bophelo provides Akanda with a low-cost gateway to the broader African continent and access to international markets. CanMart is one of a limited number of fully approved importers and distributors of medical cannabis products in the U.K. market with supply and distribution to pharmacies and clinics throughout the U.K. CanMart is committed to providing a range of the best possible cannabis-based medicinal products sourced from around the world.
A cornerstone of Akanda’s value system is its fundamental commitment to using its operations as a force for sustainability and social good. Akanda will seek to deliver on this promise by driving positive change in wellness, empowering individuals in Lesotho, and by uplifting the quality of the lives of employees and the local communities where it operates – while limiting its carbon footprint. Adhering to best practice ESG operating and disclosure standards is among Akanda’s highest priorities.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation 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 current condition, but instead represent only the beliefs of Akanda regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside 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 "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, product development, and international growth and expansion.
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