London, United Kingdom--(Newsfile Corp. - March 1, 2024) - Akanda Corp. (NASDAQ: AKAN) ("Akanda" or the "Company"), an international medical cannabis company, today announced the signing of a definitive Share Purchase Agreement and Escrow Agreement with Somai Pharmaceuticals Unipessoal, LDA ("Somai"), marking a significant milestone in the sale of its Portuguese subsidiary, RPK BioPharma Unipessoal, LDA ("RPK"). This strategic move underscores both companies' commitment to advancing the medical cannabis industry and enhancing patient access to high-quality cannabis treatments.

Under the terms of the Share Purchase Agreement, Somai will acquire RPK, Akanda's indirect Portuguese subsidiary, for a total consideration of Two Million United States Dollars (USD $2,000,000). In accordance with the Escrow Agreement, a deposit of Five Hundred Thousand United States Dollars (USD $500,000) has been placed into escrow, with the balance due upon fulfillment of the closing conditions.

The execution of the Share Purchase Agreement and Escrow Agreement follows the Amended Non-Binding Letter of Intent ("LOI") announced on February 1, 2024, and represents a crucial step towards the transaction's completion. The closing of the proposed sale is subject to customary due diligence, representations, warranties, covenants, indemnities, and other closing conditions.

Following the successful execution of this transaction, Akanda Corp. will be in a stronger financial position and will continue to strengthen its presence in the global cannabis market through its wholly-owned United Kingdom (UK) subsidiary, Canmart. Canmart is a licensed importer and distributor of Cannabis-Based Products for Medicinal use (CBPMs) in the UK. and provides third party and specialist import and distribution services for Schedule 2 products including CBPM's. Canmart continues to work further with premium product suppliers to bring safe, effective and required products to market that patients demand, and working with existing and new clinical cannabis operations in the UK to provide third party products. Beyond its operations in the UK, Akanda is also developing the Gabriola Green Project in British Columbia, Canada. This farming property is set to host facilities for the production of THC and cannabinoid (CBD) products, reflecting the Company's commitment to expanding its footprint and advancing its projects across both Europe and North America.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Company's securities, nor shall there be any sale of such securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.