Akanda Corp. (NASDAQ:AKAN) revealed that the High Court of Lesotho has placed in liquidation the company’s indirect, wholly-owned subsidiary, Bophelo Bio Science & Wellness Ltd.
The action to place Bophelo in liquidation was taken by the Lesotho Court pursuant to an unauthorized application and request that was filed by Louisa Mojela, the former executive chairman of Akanda, who was recently terminated as executive chairman of Akanda, and the Mophuti Matsoso Development Trust (“MMD Trust”), which the company believes was established by Mojela.
Tej Virk, the CEO of Akanda, stated, “The application that was filed by Ms. Mojela to place Bophelo, our wholly-owned subsidiary, in liquidation was taken without Akanda’s prior authorization, knowledge or consent. We therefore have reason to believe that Ms. Mojela’s actions reflect her efforts to retaliate against the company in response to her dismissal and removal from the board of directors of Akanda on June 23, 2022, on the basis of a lack of focus on profitability under her leadership. It is appalling that Ms. Mojela would take the extraordinary and significant action of seeking to cause Bophelo to be declared insolvent without consulting with, or obtaining the consent of, the board of directors or the senior management team of Akanda, which is the beneficial owner of 100% of Bophelo’s equity interests, or even of the full board of directors of Bophelo itself.”
Akanda intends to convene a special committee to investigate Mojela’s actions and conduct, including actions and conduct taken by her prior to her filing of the liquidation application, and will pursue all of its available legal rights and remedies against Mojela and the MMD Trust for taking this unauthorized action. The company also intends to contest and seek to reverse the determination by the Lesotho Court to place Bophelo in liquidation. In addition, Akanda will seek to recover significant loans that it has made to Bophelo to fund the execution of Bophelo’s business plan, including payment of rents and staffing costs, in the event that the Lesotho Court does not reverse its determination to place Bophelo in liquidation. Finally, Mojela has been summarily terminated as chairman of Bophelo for cause, as a “bad leaver”, as a result of her improper and unauthorized action to seek to place Bophelo in liquidation.
Photo by Sasun Bughdaryan on Unsplash
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