Akanda Corp. (AKAN) shares rocketed 44.86% higher in after-hours trading Thursday, hitting $1.37 after a series of shareholder votes went the company's way.

The stock had closed regular trading at $0.95, down 6.33% on the day, which made the after-hours rally all the more striking.

Reverse Split Gets the Green Light

The headline news came from an SEC filing submitted Tuesday revealing shareholder approval of a share consolidation proposal. In plain English, that's a reverse stock split.

Here's how it works: The board now has authorization to execute one or more reverse splits at ratios anywhere from 2-for-1 up to 100-for-1, with a cumulative maximum of 100 pre-consolidation shares becoming one post-consolidation share. The board must act before either the 12-month anniversary of the shareholder meeting or the next annual meeting, whichever comes first.

Reverse splits typically help struggling companies maintain compliance with exchange listing requirements by boosting their per-share price.

First Towers Deal Formalized

Shareholders also approved the issuance of 4.77 million Class B Special Shares to former First Towers & Fiber Corp. shareholders. This move was necessary to comply with NASDAQ listing rules that apply when issuing 20% or more of outstanding shares as of August 21.

Akanda acquired First Towers & Fiber Corp., a telecommunications infrastructure company, back in August, and this approval essentially dots the i's and crosses the t's on that transaction.

Debt Settlement Shares Approved

The third proposal that passed authorizes the issuance of 732,384 common shares tied to Class B Special Shares issued under debt settlement agreements dated August 19. Additionally, shareholders approved the potential issuance of up to 27.3 million common shares upon conversion of six-year convertible promissory notes totaling $4.90 million in principal.

Interim CEO and Director Katie Field signed the filing for the Toronto-based company.

The Bigger Picture

Before you get too excited about the after-hours surge, consider the context. AKAN shares are down 82.08% year-to-date. The company has a market capitalization of just $689,030—barely above half a million dollars—and its stock has traded between $0.88 and $9.29 over the past 52 weeks.

That's a brutal year by any measure, and these corporate actions suggest Akanda is working hard to stabilize its financial position and maintain its listing status. Whether the after-hours enthusiasm translates into sustained momentum remains to be seen.