London and Irvine, CA, May 4, 2022 - Akanda Corp. ("Akanda" or the “Company”), an international medical cannabis company, today announced it has closed the acquisition of Holigen Limited (“Holigen”) from The Flowr Corporation (“Flowr”) (TSXV: FLWR, OTC: FLWPF), accelerating Akanda’s seed-to-patient business model in the EMEA region, improving the Company’s ability to meet growing demand for medical cannabis and positioning it for adult use markets as regulations evolve.
“Holigen provides the added superior genetics, capacity, and route-to-market Akanda needs to ensure that we capture more than our share of the rapidly emerging cannabis market across the EMEA region,” said Tej Virk, Chief Executive Officer of Akanda. “Together with Holigen, we are positioned to be a leaderin today’s medical cannabis environment and to have the ability to scale to the recreational opportunity as it unfolds. Now that the acquisition has closed, I look forward to working with Tom Flow and his team to leverage the platforms of both companies.”
Under terms of the agreement, Akanda acquired 100% of the issued and outstanding shares of Holigen for a combination of approximately US$3.0 million in cash (C$3.75 million), 1.9 million Akanda common shares, and the assumption at RPK of approximately US$4.3 million (€4.0 million) of debt which is non-recourse to Akanda. In addition, to further align Akanda and Flowr, concurrently with the closing of the acquisition, Akanda purchased 14,285,714 Flowr common shares for aggregate gross proceeds to Flowr of approximately US$790,000 (C$1.0 million) at a price per share of C$0.07. Akanda has provided at least US$678,000 of interim funding to Holigen to support its working capital needs prior to closing.
About Akanda Corp.
Akanda is an international medical cannabis and wellness platform company seeking to help people lead better lives through improved access to high quality and affordable products. The Company is building a seed-to-patient supply chain, connecting patients in the UK and Europe with diverse products including cannabis products cultivated at its competitively advantaged grow operation in the Kingdom of Lesotho and with other trusted third-party brands. Akanda’s initial portfolio includes Bophelo Bioscience & Wellness, a GACP qualified cultivation campus in the Kingdom of Lesotho in Southern Africa, and CanMart, a UK-based fully licensed pharmaceutical importer and distributor which supplies pharmacies and clinics within the UK.
About Boustead Securities, LLC
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