What is Akanda Corp. (AKAN) and what does it actually do now?

Akanda Corp. is a Nasdaq-listed company that originally operated as a medical cannabis distributor. Its only operating subsidiary, Canmart Ltd., handled UK cannabis distribution until it was shut down in March 2025. Following an August 2025 acquisition of First Towers & Fiber Corp., the company's current operations consist of fiber-optic infrastructure in Mexico. Fugazi Research argues that Akanda's public branding still presents a cannabis identity that no longer reflects the business.

Is Akanda still a cannabis company?

Operationally, Fugazi Research argues it is not. Canmart Ltd., Akanda's sole cannabis-related subsidiary and only source of FY2024 revenue, was shut down in March 2025. The NT-20F filed May 1, 2026 showed no identified cannabis revenue source for 2025. The company's current disclosed operations involve fiber-optic infrastructure in Mexico through First Towers & Fiber Corp. Akanda's website and social media, however, had not been updated to reflect the pivot as of the report's writing — its social media still referenced the Sintra, Portugal grow facility sold in early 2024.

What are the main risks Fugazi Research identifies for AKAN shareholders going forward?

The report points to several specific near-term risks: the filing of the delayed Form 20-F after the NT-20F; conversion and resale of the approximately 6.7 million registered shares tied to the January 2026 notes; the board's authorization to execute additional reverse splits without shareholder approval; potential future dilutive capital raises given $1.3 million in cash against $26 million in debt; and ongoing Nasdaq compliance pressure. Fugazi Research argues the company must either raise more capital through dilution or achieve rapid business growth — neither of which the report views as likely given current fundamentals.

How has Akanda funded itself since its Nasdaq listing?

Since listing in March 2022, Akanda has relied on equity issuances, registered direct offerings, underwritten deals, and convertible notes rather than operations. In 2024 alone, the company completed seven or more offerings raising approximately $11.5 million at prices ranging from $32.48 to $2.00 per share. Per Dilution Tracker, Akanda has completed ten total offerings raising approximately $46 million — roughly 30 times the company's market cap at the time of the April 2026 reverse split.

Fugazi Research: Akanda Surged 2,000% on Marijuana Reclassification News Despite Having No Cannabis Revenue Since February 2025 and Now Installing Fiber in Mexico

The 2,000% spike was built on a mismatch: marijuana reclassification headlines hit a stock that had already pivoted to a $2 million, 10-year fiber contract in Mexico worth roughly $200,000 per year. The float optics were engineered – six reverse splits since March 2023 for a cumulative 1-for-56,340 ratio, with the board holding authorization for further splits up to 1-for-100 without shareholder approval. Behind the tight float sits approximately 6.7 million registered resale shares from convertible notes converting at an 85% VWAP discount, more than 12 times the 534,400 shares outstanding. Of the $19 million raised in those notes, $6.725 million – 35% of gross proceeds – went directly to IR Agency, LLC, a retail stock-promotion firm Fugazi links to a "Secret Stock" AKAN promotional page. The company's website still promoted its Sintra, Portugal grow facility sold in early 2024. Since listing in March 2022, Akanda has accumulated a $57.4 million deficit against $63.3 million in total paid-in capital.

Ticker: AKAN (Akanda Corp.)
Research Firm: Fugazi Research
Report URL: https://www.fugaziresearch.com/p/akan-akanda-corp-akan-a-half-baked?ref=shortreport.fyi
Position Disclosure: The author discloses holding a short position in AKAN and states they stand to profit if the share price declines.

Thesis

Fugazi Research argues Akanda Corp. is a failed cannabis company that has pivoted into a small Mexican telecom asset, and that its April 2026 stock surge was driven by trader misidentification, paid promotion, and reverse-split optics rather than any business recovery.

Cannabis Business Gone: Akanda's only operating subsidiary, Canmart Ltd., was shut down in March 2025. Per the NT-20F filed May 1, 2026, the company generated approximately $258,075 in 2025 revenue with no identified cannabis revenue source, down from $836,664 in FY2024, itself down from $2.1 million in 2023.
Replacement Business Too Small: The company's announced telecom pivot centers on a $2 million fiber infrastructure contract in Mexico spread over 10 years, approximately $200,000 per year, against an annual operating burn exceeding $4 million per the same NT-20F filing.
Operating Losses Accelerating: Preliminary 2025 figures from the NT-20F show roughly $18 spent for every $1 earned. FY2024 operating cash burn was $3.9 million, up 165% from $1.5 million the prior year, per the April 30, 2025 Form 20-F.
Balance Sheet Deteriorating: Cash fell from $3.8 million at year-end 2024 to roughly $1.3 million as of February 28, 2026, a 66% decline in approximately 60 days. Over the same twelve-month window, total debt rose from $3.64 million to approximately $26 million, per the March 20, 2026 F-1/A3.
Conflicted Acquisition: The First Towers & Fiber Corp. acquisition added a $14.1 million note at 16% interest, secured by substantially all assets. Per the F-1/A3, director Christopher Cooper was simultaneously a co-founder, shareholder, executive, and director of First Towers; he recused himself from the Akanda board vote and was removed from the audit committee.
Toxic Convertible Structure: The report alleges Akanda raised approximately $19 million in convertible notes between September 2025 and January 2026 at an 85% VWAP discount conversion formula. The resulting registered resale pool, approximately 6.7 million shares after the April 2026 reverse split, is more than 12 times the roughly 534,400 shares outstanding, per the April 9, 2026 6-K and the F-1/A3.
Promotion Funded by Note Proceeds: Of the $19 million raised, $6.725 million, 35% of gross proceeds, was paid to IR Agency, LLC, a retail stock-promotion firm, per the F-1/A3. The report links IR Agency to a "Secret Stock" AKAN promotional page and characterizes the arrangement as a documented dilution-and-promotion loop.
Six Reverse Splits, More Authorized: Since March 2023, Akanda has executed six reverse stock splits for a cumulative ratio of approximately 1-for-56,340, most recently a 1-for-4.5 in April 2026. Per the F-1/A3, the board holds authorization for further splits up to an aggregate 1-for-100 without additional shareholder approval.
Wrong-Narrative Rally: The report characterizes the April 2026 stock surge as circumstantially driven by marijuana reclassification headlines, per AP News reporting, applied to a company that had already pivoted to fiber infrastructure in Mexico. The connection between the policy news and AKAN's actual business is presented as the author's interpretive framing, not a documented fact.
No Path to Profitability: Since its March 2022 Nasdaq listing, Akanda has accumulated a $57.4 million deficit against $63.3 million in total paid-in capital, per the April 30, 2025 Form 20-F. The report completed ten offerings totaling approximately $46 million per Dilution Tracker, roughly 30 times the company's market cap at the time of the latest reverse split.

Notable Details

Akanda's social media had not been updated since November 2022 and was still promoting its Sintra, Portugal indoor grow facility, a property the company sold in early 2024.
The company's 2025 revenue of approximately $258,075 was less than one-third of what it spent on salaries during the same period, per the NT-20F.
At roughly $1.5 million in market cap at the time of the April 2026 reverse split, Akanda was worth less than one-quarter of what it paid IR Agency, LLC alone for promotional services over the prior two years.
A stock appearing to trade near $60 is described as worth only pennies on a pre-split-adjusted basis, the product of a cumulative 1-for-56,340 reverse split ratio since March 2023.
Per the F-1/A3, 30,314,961 shares were registered for resale as of March 20, 2026, against just 2,404,882 common shares outstanding at that date, before the subsequent 1-for-4.5 split further concentrated the optics.

"The company isn't even in the weed business anymore. They are installing fiber-optic towers in Mexico."

— Fugazi Research, concluding section of the AKAN report

FAQs

Why did AKAN stock surge more than 2,000% in April 2026?

The run-up began April 22, 2026, following AP News reporting on the Trump administration's expected reclassification of marijuana as a less dangerous drug, with the policy change going through on April 23. Fugazi Research argues the market was trading AKAN as a cannabis stock based on outdated perception, even though the company had generated no cannabis revenue since February 2025 and its paid promotional materials were focused on fiber infrastructure in Mexico. The report characterizes the disconnect between the news catalyst and the company's actual business as circumstantial evidence of a narrative-driven trade.

What are Akanda's most recent financial results?

The NT-20F filed May 1, 2026 disclosed preliminary 2025 revenue of approximately $258,075 against operating expenses of approximately $4,827,720, roughly $18 spent for every $1 earned. That compares with FY2024 revenue of $836,664 and an operating loss of $4.38 million per the April 30, 2025 Form 20-F. Since listing in March 2022, the company has accumulated a $57.4 million deficit against $63.3 million in total paid-in capital.

What is the First Towers acquisition and why does it matter?

In August 2025, Akanda acquired First Towers & Fiber Corp., a Mexican telecom and fiber infrastructure company. The deal added a $14.1 million note at 16% interest secured by substantially all of Akanda's assets, pushing total debt from $3.64 million to approximately $26 million within twelve months, per the March 20, 2026 F-1/A3. Fugazi Research argues the acquisition added liabilities without solving the company's operating weakness, and that the $2 million, 10-year fiber contract announced March 26, 2026 translates to only roughly $200,000 per year.

Who is Christopher Cooper and what is his role in the First Towers deal?

Christopher Cooper was an Akanda director at the time of the First Towers acquisition and was simultaneously a co-founder, shareholder, executive, and director of First Towers & Fiber Corp., per the March 20, 2026 F-1/A3. The same filing states he recused himself from Akanda's board consideration of the transaction and was removed from the audit committee. Fugazi Research highlights this conflict of interest as a governance concern tied to the deal.

What is the share overhang situation for AKAN?

As of April 9, 2026, Akanda had approximately 534,400 common shares outstanding following the most recent reverse split, per the April 2026 6-K. Against that, the January 2026 convertible notes correspond to approximately 6.7 million shares registered for resale after split adjustment, per the March 20, 2026 F-1/A3, more than 12 times the visible share count. Fugazi Research argues this makes the "tight float" appearance misleading, as a large potential supply sits behind the scenes waiting to convert and be sold.

How many reverse stock splits has Akanda done?

Akanda has executed six reverse stock splits since March 2023, most recently a 1-for-4.5 split in April 2026, for a cumulative ratio of approximately 1-for-56,340, per the F-1/A3. The board holds authorization to conduct further reverse splits up to an aggregate 1-for-100 cumulative ratio without additional shareholder approval. Fugazi Research argues the splits are used to reset share-price optics and maintain Nasdaq listing compliance rather than to create shareholder value.

What is IR Agency, LLC and how much did Akanda pay it?

IR Agency, LLC is a retail stock-promotion firm that received $6.725 million, 35% of gross proceeds, from Akanda's approximately $19 million convertible note raise between September 2025 and January 2026, per the F-1/A3. Fugazi Research links IR Agency to a "Secret Stock" promotional page for AKAN and characterizes the payment as part of a recurring pattern: raise convertible notes, fund promotion to create liquidity, allow discounted note conversion, watch the stock fall, execute a reverse split, and repeat. The report notes Akanda openly disclosed the promotional campaigns in its SEC filings.

What are the AKAN convertible notes and why does Fugazi Research call them toxic?

Between September 2025 and January 2026, Akanda raised approximately $19 million in convertible notes that convert at an 85% VWAP discount formula with an adjusted floor conversion price of approximately $1.14 per share, per the F-1/A3. Fugazi Research argues this structure incentivizes note holders to convert and sell into the market once shares are registered, creating systematic downward pressure on the stock price. The registered resale shares from these notes represent more than 12 times the current outstanding share count.

Disclaimer: This summary is not primary research and does not constitute investment advice. It is a brief overview of a detailed equity research report authored by the firm, organization, or source referenced in this article or at https://www.fugaziresearch.com/p/akan-akanda-corp-akan-a-half-baked?ref=shortreport.fyi, which contains extensive evidence, regulatory filings, and analysis; readers are encouraged to review the full report there for a comprehensive understanding. The content provided in this publication is not authored or originated by us — we act solely as a distributor and do not endorse, verify, or take responsibility for the accuracy, completeness, or reliability of the information presented. This publication is for informational purposes only and should not be construed as legal, business, investment, or tax advice. Always conduct independent due diligence and consult qualified professionals before making any decisions based on the information contained herein. We disclaim all liability for any loss or damage arising from reliance on third-party content, and the views expressed are solely those of the respective source and do not necessarily reflect our own.