The Akanda Corp (NASDAQ: AKAN) stock price surged 43.4% despite the lack of news releases from the integrated cannabis company. The last significant announcement from the cannabis firm was in December, when its CEO was sent on a paid leave of absence pending an investigation.
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Akanda revealed that its CEO Tej Virk had been on a paid administrative and personal leave of absence since November 30, 2022, to pave the way for an independent investigation by Canmart Directors and counsel.
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The CEO is supposed to conduct business on behalf of Akanda or any of its subsidiaries during his leave of absence once the investigation is completed and the firm determines the way forward.
However, today’s rally was not related to the company’s internal operations but to an announcement by the US Food and Drug Administration (FDA) calling for a new regulatory framework for cannabidiol (CBD).
The FDA noted that the existing laws covering foods and supplements were inadequate for regulating cannabidiol (CBD). The FDA promised to work with Congress on the way forward, which many interpreted as new Federal cannabis laws.
However, given that control of the US Congress is split between the Democrats, who control the Senate and the Republicans, who control the House of Representatives, enacting a bi-partisan cannabis law may take time unless both parties are motivated to pass such laws.
Still, the FDA’s call reignited the positive sentiment among cannabis investors boosting Akanda stock, which soared as much as 200% on Thursday and closed the day’s session up 47.37%. Today’s rally is an extension of yesterday’s move higher.
Investors are also eagerly awaiting the outcome of the investigation into Akanda’s CEO. Meanwhile, the company’s board of directors appointed Katie Field, one of the directors, as Executive Director to take over the form’s daily operations. Other directors will assist Ms Field in her role.
Despite the ongoing investigation, the company promised to continue serving its customers, shareholders and employees.
*This is not investment advice.
Akanda stock price chart.
The Akanda stock price surged 43.39% to trade at $0.40, from Thursday’s closing price of $0.28.
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