What happened
An unusual stock even by the standards of the marijuana industry, medical weed specialist Akanda (AKAN 0.83%) had an unusually good day on Monday. The London-based pot company's shares wafted almost 14% higher on news of a major store opening from its majority shareholder, Halo Collective (HCAND).
So what
With fanfare, Halo Collective announced that its first Budega dispensary has opened in Los Angeles in the city's North Hollywood neighborhood. This is the first of three Los Angeles dispensaries that the Canada-based company plans to open.
Image source: Getty Images.
Having a retail store dispensing product smack dab in one of the top states where marijuana is fully legal has an obvious benefit for Akanda. Since Halo Collective is Akanda's majority shareholder (with a stake just under 51%), it has plenty of incentive to sell Akanda's medical marijuana products in that outlet -- and presumably the other two dispensaries once they're up and running.
Now what
Akanda is a brand-new marijuana stock, having had its initial public offering (IPO) last week. It was a successful debut, with the stock rising to close at nearly $18 per share, more than four times the IPO price. Since then, however, shares have generally declined; even after Monday's price pop, they were well down from that peak, at $8.41.
Regardless, Halo Collective's Los Angeles entry is inarguably good news for Akanda. The latter company, which cultivates its product in Lesotho, a small country in southern Africa that aims to become an important medical cannabis producer, is currently pre-revenue. So any sales it records, no matter how small, are major steps in its development into a potential player in the weed industry.
