Today’s been a rather impressive day in the medical cannabis space. Earlier, we reported on the impressive move made by Incannex Healthcare (NASDAQ:IXHL). However, another big mover today is Akanda (NASDAQ:AKAN), yet another player in the medical cannabis space. Currently, AKAN stock has surged more than 165% on its opening day following its initial public offering (IPO).
There’s often a great degree of volatility on the first day of trading for any stock. However, for Akanda, today was truly remarkable, on a number of levels.
For starters, the company announced the pricing of its IPO at $4 per share yesterday. This IPO raised $16 million for the medical cannabis company. Akanda has said it intends to use these funds for property, plant and equipment, operations, working capital and general corporate purposes.
However, it appears the company greatly underpriced its offering. High demand for AKAN stock out of the gate resulted in shares of this medical cannnabis company opening at $30 per share. Those who managed to get in on the IPO and sell at open thus pocketed a 750% gain in minutes.
Currently, AKAN stock is trading above $10 per share in late afternoon trading. That’s still a very handsome return for investors in such a short amount of time.
For those intrigued by today’s price action with this stock, let’s dive into a few things to know.
What to Know About AKAN Stock
- Akanda is a U.K.-based company focused on the medical cannabis market.
- Specifically, Akanda focuses on medicinal-grade cannabis biomass, flower and concentrates to wholesalers.
- Incorporated in 2021, the company pushed for an IPO to expand its business further.
- This IPO marked a first for a British-based cannabis company listed on the Nasdaq.
- Investors appear to like the global nature of this medical cannabis company.
- With valuations in the sector much lower than previous listing frenzies, investors appear to be searching for companies providing unique value.
- Additionally, Akanda has various sustainability goals imbedded in its business model, something that appears to be driving interest in this stock today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
