Akanda Corp. Chair Louisa Mojela on Nasdaq listing, expansion plans

Akandacorp, a cannabis producer based in Lesotho and focused on European markets, has recently made headlines by doubling its market cap shortly after becoming the first company with production in Lesotho to be listed on the Nasdaq. The company's initial public offering saw it reach a peak of $31 per share, although it closed at $8.04 per share yesterday. Executive Chairperson Dr. Louisa Mojela joins CNBC Africa to discuss the company's business strategy and future outlook. When asked about the various labels such as 'cannabis stock,' 'marijuana stock,' or 'pot stock,' Dr. Mojela diplomatically describes Akandacorp as fitting into the category of medicinal cannabis. She notes that the market reception following their Nasdaq listing exceeded expectations given prevailing market conditions. As a pre-revenue company, Akandacorp remains a relatively new player in the industry. The term 'pre-revenue' refers to their subsidiary Bupilo, a cultivating company in Lesotho, which is projected to start generating substantial revenue by 2023-2024. Despite not currently processing their products, the company's holistic strategy encompasses cultivation, export, and eventual processing into medicinal products. Dr. Mojela elaborates on Akandacorp's cultivation operations in Lesotho, emphasizing their commitment to eventually processing the medicinal cannabis locally. However, before reaching that stage, the company needs to obtain European GMP certification, which is crucial for processing medicinal products. Currently certified for GACP, Akandacorp aims to ensure an inclusive and sustainable economic model by promoting local processing as well. In response to a question about choosing the Nasdaq over a South African listing, Dr. Mojela highlights the regulatory landscape in South Africa, where cannabis legalization remains incomplete. While acknowledging the potential for future listings on exchanges like the GSE, LSE, or the German Stock Exchange, for now, Nasdaq offered Akandacorp the opportunity to join a cohort of other cannabis companies. European markets are central to Akandacorp's growth strategy, with a UK-based sister company, Ken Mat, set to handle distribution of processed products. Partnerships with companies like CanTrage further indicate the company's focus on penetrating markets that comply with European regulations. Driven by the existing European network, Akandacorp also eyes expansion into Australia, Israel, and various parts of Africa. In conclusion, Akandacorp's unique positioning as a Nasdaq-listed cannabis producer with roots in Lesotho underscores its commitment to tapping into global markets while laying the groundwork for local processing. Dr. Mojela's insights shed light on the company's strategic growth trajectory and its role in shaping the future of the cannabis industry.