Akanda Books €1.8M of Revenue in Q4 2022 As German Sales Start

International medical cannabis company Akanda Corp. (“Akanda” or the “Company”) (NASDAQ: AKAN, WKN: A3DG83) today announced that it successfully launched its initial supply to German customers recognizing approximately €1,803,996M ¹ in sales of EU GMP high-quality indoor-grown medical cannabis in the last quarter of 2022. On a preliminary, unaudited basis, Akanda has recognized its first material revenues since its inception, validating the Company’s strategy to enter the European markets supplying high-end indoor-grown cannabis. These revenues result from only two full months of sales, with the indoor facility shipping only an estimated 40% of the facility's capacity. The Company prepares for the expansion of its indoor cultivation capabilities at its Holigen facility after receiving test results for the highest percentage of THC potency in any cannabis product to be sold within Germany and forecasts sales to double over the next six months.

According to the preliminary, unaudited financials from Q4 2022, the Company has recognized gross revenues of EUR 1,803,996M with EBITDA of €472K and an EBITDA margin of 16.5% on only two months of sales and three months of fixed costs. Q4 revenues increased as a result of cannabis sales produced by Akanda’s wholly-owned subsidiary in Portugal, Holigen Limited (“Holigen”), which implements sophisticated processes to avoid weakening terpenes and product potency. Akanda’s premium cannabis products have tested at 29.2% THC and are the highest THC percentage products to be released and sold in the German medical cannabis market. The Company has received many positive reviews on German WeedMaps for its premium T24 and T27 cannabis products, which have been sold under third-party brand names. The Company has over 800 kg of freshly cultivated cannabis ready for pending medical sales expected in Q2 and Q3.

In addition, as demand for medical cannabis in the EU increases, the Company plans to expand its overall indoor EUGMP cultivation capacity at its Holigen facility by increasing the number of grow rooms in its facility in Sintra, near Lisbon, Portugal. Holigen has been successfully operating a 20,000-square-foot facility, and the expansion plan is expected to allow the facility to perform at an increased capacity.

The Company expects that these sales volumes will increase throughout 2023 based on the following:

• Initial sales exceeding the Company’s original internal projections,
• Current existing inventory on hand,
• Planned increases in cultivation production, and
• Expansion into the UK market.

Furthermore, the Company’s German distribution partner recently launched its new Pharmacy Partnership Program², designed to improve and support visibility and expertise to expand in the German medical cannabis market. The distributor offers a comprehensive product range in which Holigen-supplied high-quality medical-grade cannabis is made available.