The NASDAQ-listed international medical cannabis operator announced last week that it will abandon its operations in Lesotho following a legal battle with a disgruntled former director.
In July, BusinessCann reported that Akanda’s wholly owned subsidiary in the Southern African country had been placed into liquidation by its former Executive Chairman Louisa Mojela and the Mophuti Matsoso Development Trust (MMD Trust), which she founded.
Ms Mojela was one of the six board members who were thrown out of the company on June 23 following a coup from ‘concerned shareholders’ who held a collective 54% stake in the company.
In what Akanda has described as an act of ‘retaliation’, Ms Mojela filed the ‘unauthorised’ application ‘without Akanda’s prior authorisation, knowledge or consent’ with the Lesotho High Court to place the company into liquidation.
At the time, Akanda said it would ‘pursue all of its available legal rights’ to reverse the liquidation, and seek to recover ‘significant loans it has made to Bophelo’ to fund its business plan, following its acquisition last year.
On November 16, however, the company said that ‘after careful consideration’ it has made the decision to ‘cease involvement in Bophelo’s Lesotho operations’.