AKAN Stock Leaves Cannabis Peers In The Smoke With A Stunning 1,700% Rally In April — What’s Fueling The Run?

• AKAN is also on track for its best week ever with gains of 300% so far.
• Investor sentiment across cannabis stocks improved after the U.S. Justice Department moved state-regulated marijuana toward Schedule III.
• AKAN’s rally was amplified by its tiny public float of about 534,420 shares, following multiple reverse stock splits.

Shares of Akanda Corp. (AKAN) delivered one of the biggest rallies in April among cannabis stocks, rocketing 1,700% and sharply outperforming peers as traders targeted the micro-float stock during a policy-driven sector rebound.

AKAN stock outperformed cannabis peers, including Trulieve Cannabis (TCNNF), up 94%; Canopy Growth Corp. (CGC), up 30%; IGC Pharma (IGC), up 25%; and Aurora Cannabis (ACB), up 12%, over the past month. AKAN is also poised to log its best week ever, having more than quadrupled as of Thursday’s close. 

Tiny Float, Higher Buzz For AKAN

Investor sentiment for cannabis stocks got a boost after the U.S. government moved state-regulated marijuana from Schedule I toward Schedule III, pushing increased medical research access, tax treatment clarity, and regulatory legitimacy.

The change revived optimism across the medical cannabis sector, with traders rotating into smaller stocks, which have exposure to future regulatory tailwinds. Akanda had previously welcomed U.S. rescheduling efforts in December, keeping the company relevant in the segment.

The company operates a hemp platform focused on expanding access to medicinal-grade cannabis, CBD, and wellness products across legal markets. THC, or tetrahydrocannabinol, is the part of cannabis that produces the “high” and is therefore more tightly regulated, while CBD, or cannabidiol, does not cause intoxication and is widely used in medical and wellness treatments. 

The company implemented a 1-for-3.125 reverse stock split last year, followed by a more recent 1-for-5 reverse stock split in January. A further reverse split adjustment last month reduced its total float to 534,420 shares. Short levels for the stock currently stand at 4.7%, its highest levels in four months. 

Meanwhile, cannabis peers such as TLRY have a float of 119.28 million shares, CGC about 380.82 million, and CRON nearly 379.05 million. The comparatively tiny supply made AKAN shares more sensitive to buying pressure amid April’s cannabis rally.

Canada Cultivation Plans Take Root

Akanda’s main cannabis asset is its Gabriola Island cultivation site in British Columbia, where the company currently operates under a hemp cultivation license, while working toward a full THC cultivation license covering cannabis flower and derivative products. In October, the company extended its option on the property for an additional two years.

The pot firm has also been evaluating Health Canada-aligned security infrastructure requirements, including improved perimeter controls, surveillance systems, access management, and secure storage measures needed in licensing inspections for THC and CBD activities. Commercial THC production has not yet begun at the site.

Akanda also exited its earlier African cultivation exposure after operations at its former unit in Lesotho ceased following an unauthorized liquidation ordered by the High Court of Lesotho in 2022, after which Akanda moved away from the region. It later discontinued operations at its Canmart distribution unit in the UK last year, citing licensing renewal costs and litigation exposure that outweighed expected near-term revenues.

Telecom Pivot Adds A Safety Net

Akanda has also been gradually refocusing its strategy more heavily on Canada and Europe, while building a parallel telecommunications infrastructure platform through its unit, First Towers & Fiber, in Mexico. 

As part of the pivot, the company has been expanding its dark-fiber network footprint across Central Mexico, including a recent addition of about 200 kilometers of infrastructure, which is expected to generate $2 million in contracted cash flow over 10 years. The move into telecom has added a source of contract-based income alongside Akanda’s medical cannabis business, providing investors with a potential hedge against the typical volatility in pure-cannabis companies. 

How Do Retail Traders Feel About AKAN?

On Stocktwits, retail sentiment for AKAN was ‘extremely bullish’ amid an eye-watering 231,800% surge in message volumes over the past month.

One user said, “This is a low float that can run as high as it’s pushed. Shorts will have to cover at some point. Yes it will go down but the real question is how high can we push it?”

Another user said, “Fundamentals don’t matter in a short squeeze. It’s just math. Limited supply meets infinite demand.”

AKAN stock has jumped 376% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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