Akanda Corp. (NASDAQ:AKAN) shares climbed 22% in premarket trading on Friday after the company announced it had regained compliance with Nasdaq’s listing requirements following the submission of its delayed annual report.
The move removes a regulatory overhang that had weighed on the stock after the company was previously notified of a filing deficiency.
Nasdaq Confirms Compliance
Akanda disclosed that it received written confirmation from Nasdaq on June 10 stating that it had returned to compliance with Listing Rule 5250(c)(1).
The rule requires listed companies to file periodic financial reports with the U.S. Securities and Exchange Commission on a timely basis.
The confirmation follows the company’s recent efforts to bring its reporting obligations up to date.
Delayed Annual Report Triggered Deficiency Notice
Nasdaq informed Akanda on May 20 that it was no longer compliant with the exchange’s reporting requirements after failing to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2025.
The company subsequently submitted the required filing to the SEC on June 9.
Following the filing, Nasdaq reviewed the matter and confirmed that the deficiency had been resolved, formally closing the case.
Regulatory Milestone Removes Uncertainty
Regaining compliance is an important step for Akanda, as continued non-compliance could have exposed the company to further regulatory action, including the potential risk of delisting.
With the filing issue now resolved, management can refocus attention on business operations and strategic priorities rather than regulatory matters.
The announcement was welcomed by investors, driving a sharp increase in the stock during premarket trading.
Cannabis and Wellness Focus
Based in Toronto, Akanda operates a cannabis business in Canada through its subsidiary operations.
The company focuses on the cultivation, production and distribution of cannabis and wellness products, serving markets within the regulated cannabis sector.
The latest Nasdaq notification provides greater certainty around the company’s listing status and removes a key concern that had recently weighed on investor sentiment.