Akanda Corp. (NASDAQ:AKAN) shares dropped nearly 8% on Thursday after the company said it will carry out a 1-for-5 reverse stock split, set to take effect on January 12, 2026.
The consolidation, which received shareholder approval on November 28, 2025 and was subsequently authorized by the board on December 23, 2025, will shrink the number of outstanding common shares from roughly 10.1 million to about 2.0 million. Trading on a post-split basis will begin at the market open on January 12 under the same ticker symbol, AKAN.
Akanda emphasized that the reverse split will not change investors’ proportional ownership in the company, aside from minor adjustments tied to the handling of fractional shares. No fractional shares will be issued; any fractional entitlements will be rounded down to the nearest whole share, with no cash paid in lieu.
The company also said that outstanding stock options, warrants and other convertible instruments will be adjusted proportionally in line with their respective terms. Shareholders holding shares electronically or through brokers should see the changes reflected in their accounts on or shortly after January 12, while holders of physical share certificates will be contacted by Vstock Transfer, the exchange agent, with instructions on how to proceed.
The selected 5-for-1 ratio falls within the broader reverse split range previously approved by shareholders, which allowed for an aggregate ratio of up to 2-for-100. Following the split, Akanda’s new CUSIP will be 00971M601 and its new ISIN will be CA00971M6018.