Akanda Corp. (NASDAQ:AKAN) stock surged on Wednesday. The move follows a massive multi-day rally in the cannabis sector.

Speculative momentum remains high after U.S. regulators moved to reclassify marijuana products.

Regulatory Shifts Fuel Optimism

The U.S. Department of Justice placed state-regulated medical marijuana under Schedule III. An expedited process for broader reclassification is now underway.

A new administrative hearing is scheduled for June 29.

Shareholder Meeting Adjourned

The company officially adjourned its Special Meeting of Shareholders today. The delay stemmed from a lack of quorum.

Despite this, investors focused on the broader industry news.

Low Float and Restructuring

Akanda recently executed a 1-for-4.5 reverse stock split on April 13. This reduced outstanding shares to approximately 534,400.

Critical Levels To Watch for AKAN Stock

Akanda is rebounding hard off its March swing low and is now well off the 52-week bottom of $2.29, though it remains far below the 52-week high of $209.03—price is still trying to repair longer-term damage.

The stock is trading 361.5% above its 20-day simple moving average (SMA) and 231.9% above its 100-day SMA, which points to an unusually stretched short- and intermediate-term upswing after a sharp reversal.

The relative strength index (RSI), a momentum gauge, is 89.71.

What Does Akanda Do?

Akanda is a cannabis cultivation, manufacturing, and distribution company. It operates across cultivation, distribution, and corporate segments, with most revenue coming from distribution.

AKAN Price Action: Akanda shares were up 43.91% at $25.17 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock