LONDON – Akanda Corp. (NASDAQ: AKAN), an international medical cannabis company, has announced its intention to explore technological advancements in the cannabis sector, including , blockchain, and artificial intelligence (AI) applications. This move aims to address the banking challenges faced by the cannabis industry and improve quality control and supply chain management.
The company believes cryptocurrencies could offer a viable alternative to traditional banking for cannabis businesses, which often struggle to access financial services. By utilizing decentralized blockchain technology, Akanda sees an opportunity for these businesses to facilitate peer-to-peer transactions and self-banking.
Additionally, blockchain is considered a potential solution for enhancing the integrity of Certificates of Analysis (COAs), which are crucial for verifying product quality and safety. The technology can provide a secure and transparent method to track COAs throughout the supply chain, ensuring product authenticity and compliance.
Akanda is also investigating the potential of AI to optimize cannabis strain selection and cultivation. AI could assist in identifying popular strains and tailoring growing conditions to produce consistent results. Furthermore, the company suggests that AI might eventually be used to develop cannabis strains tailored to treat specific medical conditions.
Following a recent underwritten public offering, Akanda plans to strengthen its global cannabis market presence through its UK subsidiary, Canmart, which imports and distributes Cannabis-Based Products for Medicinal use (CBPMs). The company is also developing the Gabriola Green Project in Canada for the production of THC and CBD products.
Interim CEO and Executive Director, Katie Field, expressed confidence in the company’s new strategic direction, citing improved cash position and debt reduction plans. She anticipates growth not only through the UK business but also by venturing into supportive technological segments.
The European medical cannabis industry is expected to exceed €550 million in sales by the end of 2023, with projections indicating a rise to €1.6 billion by 2027 as markets in Germany, Czech Republic, Switzerland, and the Netherlands expand.
This announcement is based on a press release statement.
InvestingPro Insights
As Akanda Corp. (NASDAQ: AKAN) embarks on integrating cutting-edge technologies such as Bitcoin, blockchain, and AI into its operations, the company’s financial health and market performance remain critical for investors. With a significant shift towards technological solutions to overcome industry hurdles, Akanda’s strategic moves could impact its market valuation and investment outlook.
InvestingPro data paints a detailed picture of Akanda’s current financial status. With an adjusted market capitalization of just 1.4 million USD, the company is relatively small in size. Despite a remarkable revenue growth of 3466.29% in the last twelve months as of Q2 2023, Akanda operates with a negative Price/Earnings (P/E) ratio of -0.09, indicating that it is not currently profitable. Moreover, the Price/Book ratio stands at a low 0.06, which could suggest that the stock is undervalued relative to the company’s book value.
InvestingPro Tips highlight several challenges and opportunities for Akanda. The company’s stock price has experienced significant volatility, with a 21.1% decrease over the last week and an 83.99% decline over the past year, reflecting a bearish sentiment among investors. Additionally, Akanda’s financial obligations raise concerns, as short-term liabilities exceed liquid assets, which could pose risks in meeting immediate financial commitments.
For investors seeking comprehensive analysis, InvestingPro offers additional insights on Akanda, with a total of 16 InvestingPro Tips available. These tips provide a deeper understanding of the company’s financial health and stock performance, which could be essential for making informed investment decisions. Interested readers can explore these tips further and take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date approaching on May 1, 2024, stakeholders and potential investors will be watching closely to see how Akanda’s strategic focus on technology within the cannabis sector will translate into financial performance and market growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Register at Binance