{"url_path":"/sec/akan/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 MAJOR SHAREHOLDERS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-09","source_url":"https://www.sec.gov/Archives/edgar/data/1888014/0001213900-26-066800-index.html","accession_number":"0001213900-26-066800","cik":"0001888014","ticker":"AKAN","issuer_name":"AKANDA CORP.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1888014/0001213900-26-066800-index.html","primary_entity_key":"0001888014","primary_entity_name":"AKANDA CORP."},"word_count":2850,"has_tables":true,"body_markdown":"** **\n\n**ITEM 7. MAJOR SHAREHOLDERS\nAND RELATED PARTY TRANSACTIONS**\n\n** **\n\n**A.**\n**Major Shareholders**\n\n \n\n**Share Ownership**\n\n** **\n\nThe following table sets forth information about the beneficial ownership\nof our Common Shares as of June 8, 2026 by:\n\n \n\n \n●\neach of our executive officers\nand directors;\n\n \n\n \n●\nall of our executive officers\nand directors; and\n\n \n\n \n●\neach person or entity (or\ngroup of affiliated persons or entities) known by us to be the beneficial owner of 5% or more of our Common Shares.\n\n \n\n63\n\n \n\n \n\nTo our knowledge, each shareholder\nnamed in the table has sole voting and investment power with respect to all of our Common Shares shown as “beneficially owned”\n(as determined by the rules of the SEC) by such shareholder, subject to applicable community property laws and except as otherwise set\nforth in the footnotes to the table. The SEC has defined “beneficial” ownership of a security to mean the possession, directly\nor indirectly, of voting power and/or investment power.\n\n \n\nPercentages of beneficial ownership (as determined in accordance with\nRule 13d-3 under the Exchange Act) are based on approximately 540,841 Common Shares outstanding as of June 8, 2026.\n\n \n\nCommon Shares which may\nbe acquired upon conversion of convertible securities or exercise of stock options or warrants which are currently exercisable or convertible\nor which become exercisable or convertible within 60 days after the date indicated in the table are deemed beneficially owned by\nthe holder thereof.\n\n \n\nExcept as noted in the footnotes\nto the table below, the address for all of the shareholders in the table below is c/o Akanda, c/o Gowling WLG (Canada) LLP, 100 King\nSt. W, Suite 1600, Toronto, ON M5X 1G5, Canada.\n\n \n\n  \n**Percentage of Common Shares\nBeneficially Owned(1)** \n\nName of Beneficial Owner \nNumber of\n\n Common Shares\nBeneficially\n\nOwned  \nPercentage \n\nExecutive Officers and Directors: \n   \n  \n\nKatharyn Field \n —  \n — \n\nGurcharn Deol \n —  \n — \n\nChristopher\nCooper(2) \n 23,974  \n 6.49%\n\nJatinder Dhaliwal \n —  \n — \n\nDavid Jenkins \n —  \n — \n\nUsama Chaudhry \n —  \n — \n\nFrancisco Juarez(3) \n 15,670  \n 4.24%\n\nEdgar Contreras(4) \n 3,688  \n 1.00%\n\n  \n    \n   \n\n**All\nexecutive officers and directors as a group (6 persons)(2)(3)(4)** \n 43,334  \n 11.73%\n\n \n\n(1)\nBeneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. A person\nis deemed to be the beneficial owner of any Common Shares if that person has or shares voting power or investment power with respect\nto those shares or has the right to acquire beneficial ownership at any time within 60 days. Includes an aggregate of 212,265 Class\nB Special Shares issued to the former holders of First Towers, which convert into our common shares on a one-for-one basis pursuant\nto the terms thereof.\n\n \n\n(2)\nIncludes (a) options to purchase 2,237 of our common shares, and (b) 19,853 common shares underlying our Class B Special Shares Mr. Cooper, Mr. Cooper’s spouse and an entity owned by him are entitled to, as a result of the acquisition of First Towers, of which they were shareholders.\n\n \n\n(3)\nIncludes (a) options to purchase 2,237 of our common shares, and (b) 12,269 common shares underlying our Class B Special Shares Mr. Juarez is entitled to, as a result of the acquisition of First Towers, of which he was a shareholder.\n\n \n\n(4)\nIncludes (a) options to purchase 2,237 of our common shares, and (b) 1,325 common shares underlying our Class B Special Shares Mr. Contreras is entitled to, as a result of the acquisition of First Towers, of which he was a shareholder.\n\n \n\nFor additional information\nabout our principal shareholders, please see Item 7.B. – Related Party Transactions.\n\n \n\n64\n\n \n\n \n\n**B.**\n**Related Party Transactions**\n\n* *\n\n*First Towers Transaction*\n\n* *\n\nChris Cooper, a member of\nour Board of Directors, was the co-founder, CEO and a director of First Towers. Mr. Cooper recused himself from all Board matters of\nAkanda relating to First Towers and the First Towers Transaction. As a result of the First Towers Transaction, Mr. Cooper and his affiliates\nreceived the same proportionate consideration as all other shareholders of First Towers. As a result of the closing of the First Towers\nTransaction, he, his spouse and an affiliate received an aggregate of 1,882 Class A Special Shares that convert into our common shares\non a one-for-one basis, and are to receive subject to shareholder approval, an aggregate of 19,853 Class B Special Shares that convert\ninto our common shares on a one-for-one basis. Mr. Cooper also had certain stock options he owned in First Towers convert into 2,237\nstock options of the Company. Mr. Cooper remains a member of our Board of Directors, and further is the president and a director of our\nFirst Towers subsidiary.\n\n \n\nOn November 21, 2024, the\nCompany entered into a Bridge Loan Agreement with First Towers, pursuant to which the Company agreed to loan to First Towers $350,000.\nInterest of the prime rate (as defined in the Loan Agreement) plus 2% will accrue and be calculated daily on the principal amount of\nthe Loan on the basis of the actual number of days the Loan is outstanding in a year of 365 or 366 days, as applicable, and will be compounded\nand payable monthly in arrears on the first business day of each month. During the year ended December 31, 2024, the Company recorded\nan accrued interest receivable of $2,953. As at December 31, 2024, the loan receivable balance including interest was $352,953. Through\nMay 2025, First Towers has borrowed an aggregate of $423,000 under such facility. This loan was terminated in consolidation as of the\nclosing of the First Towers Transaction on August 21, 2025.\n\n \n\n*Transactions with Key Management Personnel*\n\n \n\nThe Company has identified\nits Board of Directors, Chief Executive Officer (“CEO”), and its Chief Financial Officer (“CFO”) as its key management\npersonnel who have the authority and responsibility for planning, directing and controlling the Company’s main activities.\n\n \n\nFor the fiscal year ended December 31, \n2025 \n\nKey Management Remuneration \n$679,005 \n\nStock-based compensation \n — \n\n  \n$679,005 \n\n \n\nThe Key Management remuneration\nis included in Professional and Consulting fees and Personnel Expenses in the Statement of Operations.\n\n \n\nAs of December 31, 2025,\nthe Company has balances payable to related parties of $640,546 (2024 — $302,232) as below:\n\n \n\n \na.\nIncluded within accounts\npayable and accrued liabilities at December 31, 2025 is remuneration payable to key management totaling $640,546 (2024 —\n$244,933), which includes amounts owing to the following current and former directors and officers of the Company:\n\n \n\n \n●\ncurrent directors and officers:\n\n \n\n \ni.\n$32,000 owing to J Dhaliwal\n(2024 — $8,000);\n\n \n\n \nii.\n$2,298 owing to G Deol\n(2024 — $2,192);\n\n \n\n \niii.\n$8,000 owing to K Field\n(2024 — $72,000);\n\n \n\n \niv.\n$259,435 owing to D Jenkins\n(2024 — $160,241);\n\n \n\n \nv.\n$192,175 owing to C Cooper\n(2024 — $2,500);\n\n \n\n65\n\n \n\n \n\n \nvi.\n$69,333 owing to U Chaudhry\n(2024 — $nil);\n\n \n\n \nvii.\n$17,555 owing to E Contreras\n(2024 — $nil);\n\n \n\n \nviii.\n$18,382 owing to F Juarez\n(2024 — $nil); and\n\n \n\n \nix.\n$41,368 owing to D Gordon\n(2024 — $nil).\n\n \n\n \nb.\nThe former director and\nofficer of RPK, Kiranjit Sidhu is also the owner of Catalyst Capital LLC (“Catalyst”).\n\n \n\n \ni.\nOn November 14, 2022,\nthe Company received a loan of £25,000 ($30,224) from Catalyst. The loan is unsecured and bears interest of £200 per\nweek. The loan has matured on January 31, 2023 and is due on demand. Any unpaid amount is charged with late fees of £200\nfor each week the payment is late. During the year ended December 31, 2024, the Company paid this loan in full as part of the debt\nsettlement entered in April 2024.\n\n    \n\n \nii.\nOn January 17, 2023, the\nCompany received an additional loan of €45,000 ($48,666) from Catalyst. The loan is unsecured and bears interest of 0.75% per\nday, compounding daily. The loan has matured on February 1, 2023 and is due on demand. Any unpaid amount is charged with late fees\nof 1% compounding interest for each day the payment is late. During the year ended December 31, 2023, the lender has willingly forgone\nany interest arising from this loan. During the year ended December 31, 2024, the Company paid this loan in full as part of the debt\nsettlement entered in April 2024.\n\n \n\n \niii.\nOn February 5, 2023, the\nCompany entered into another independent contractor agreement with Mr. Sidhu, pursuant to which, he agreed to provide services regarding\nthe business operations, business development, legal and strategic matters to the Company for $650,000. The payment for the services\nwas partially settled by the issuance of 28 RSUs converted to 28 Common Shares in May 2023 and 24 RSUs converted to 24 Common Shares\nin July 2023. As of December 31, 2023, the balance of the payable was $350,395, and was recorded under due to related parties’\naccount. During the year ended December 31, 2024, the Company paid this payable in full as part of the debt settlement entered in\nApril 2024.\n\n \n\n \niv.\nOn April 4, 2024, the Company\nentered into debt settlement agreement with Mr. Sidhu to settle up all amounts owing of $487,295, which includes outstanding loans\nand other consulting payables. Pursuant to the agreement, Mr. Sidhu agreed to accept $136,757 in full settlement of the outstanding\ndebt. On April 10, 2024, the Company paid the agreed amounts and recognized a gain on debt settlement of $353,159 in the consolidated\nstatements of loss and comprehensive loss.\n\n \n\n \nc.\nThe Company has the following\nloans outstanding to 1248787 B.C. Ltd. (“1248787”), a company controlled by Jatinder Dhaliwal, a director of the\nAkanda:\n\n \n\n \ni.\nOn August 18, 2023, the\nCompany received a loan of C$24,000 ($17,714) from 1248787. The loan is unsecured, bears interest of 18% per annum and payable within\n12 months. During the year ended December 31, 2025, the Company recorded interest expense of $1,076 (2024 — $3,157) and\npaid the loan in full.\n\n \n\n \nii.\nOn September 27, 2023,\nthe Company received a loan of C$3,000 ($2,219) from 1248787. The loan is unsecured, bears interest of 18% per annum and payable\nwithin 12 months. During the year ended December 31, 2025, the Company recorded interest expense of $134 (2024 — $395)\nand paid the loan in full.\n\n \n\n \niii.\nOn October 13, 2023, the\nCompany received a loan of C$40,000 ($29,258) from 1248787. The loan is unsecured, bears interest of 18% per annum and payable within\n12 months. During the year ended December 31, 2025, the Company recorded interest expense of $1,793 (2024 — $5,259) and\npaid the loan in full.\n\n \n\n66\n\n \n\n \n\n \nd.\nThe Company has the following\nloans transactions with Halo, a company controlled by Katharyn Field, the executive director and interim CEO of Akanda:\n\n \n\n \n \n\n*Unsecured debenture*\n\n \n\nOn January 26, 2023, the Company issued\na promissory note to Halo for a principal amount of $328,000. The note bears an interest rate of 7% per annum and matured on June 25,\n2023. During the year ended December 31, 2023, the Company entered into a note conversion agreement and settled this loan through\nthe issuance of 103 common shares.\n\n \n\nDuring the year ended December 31, 2023,\nthe Company received additional loans from Halo in the aggregate principal amount of $1,192,953. These loans are unsecured and bears\nthe same interest rate of 7% per annum and have no specific terms of repayment.\n\n \n\nDuring the year ended December 31, 2024,\nthe Company received additional loans from Halo in the aggregate principal amount of $44,954. These loans are unsecured and bears\nthe same interest rate of 7% per annum and have no specific terms of repayment. The Company recorded interest expense of $39,170\nfrom these loans and also made a full repayment during the year ended December 31, 2024.\n\n \n\n \ne.\nOn April 24, 2024, Mr.\nHarvinder Singh resigned as an independent director of the Board of Directors of the Company. A Resignation and Mutual Release Agreement\ndated April 24, 2024 was entered between the Company and Mr. Singh, pursuant to which the Company agreed to pay Harvinder Singh a\nseparation and release amount of $50,000. The Company has paid the amount in full on April 25, 2024. During the year ended December\n31, 2024, the Company recognized a gain on debt settlement of $48,592 in the consolidated statements of loss and comprehensive loss.\n\n \n\nAs of December 31, 2025,\nthe Company has balances receivable from related parties of $nil (2024 — $368,172) as below:\n\n \n\n \na.\n*Advances - Halo*\n\n \n\n \n \nDuring the year ended December\n31, 2024, the Company paid and accrued an amount of $15,969 (CAD21,875) of fees for services rendered by certain legal firms to Halo,\na company controlled by the interim CEO of the Company. The transactions were accounted by the Company as advances or loans to Halo.\nThe loans are non-interest bearing, unsecured and has no specific terms of repayment.\n\n \n\n \n \nDuring the year ended December\n31, 2025, the Company paid an additional amount of $220,030 (CAD307,437) of fees for services rendered by certain legal firms to\nHalo. These amounts, accounted as loans, are non-interest bearing, unsecured and have no specific terms of repayment. During the\nyear ended December 31, 2025, the Company determined that the full loan receivable balance are no longer collectible from Halo and\nrecognized a write-off of $235,686.\n\n \n\n \nb.\nThe Company has the following\nloan receivable from First Towers & Fiber Corp. (“First Towers”), a company controlled by Christopher Cooper, a director\nof Akanda:\n\n \n\n \n \nOn November 21, 2024, the Company entered into a Bridge Loan Agreement with First Towers, pursuant\nto which the Company agreed to loan to First Towers $350,000. Interest of the prime rate (as defined in the Loan Agreement) plus\n2% will accrue and be calculated daily on the principal amount of the loan on the basis of the actual number of days the loan is\noutstanding in a year of 365 or 366 days, as applicable, and will be compounded and payable monthly in arrears on the first business\nday of each month.\n\n \n\n67\n\n \n\n \n\n \n \nPursuant to the Bridge\nLoan Agreement, the Company shall also advance to First Towers a $1,000,000 loan on the same terms as the existing Loan Agreement.\nAs of December 31, 2025, the Company lent out a total of $423,000. As at December 31, 2025, the loan receivable balance including\ninterest was terminated in consolidation as of the closing of the First Towers Transaction on August 19, 2025.\n\n \n\nThe Company’s related\nparty transactions are measured at the exchange amount which is the amount of consideration established and agreed to by the related\nparties.\n\n \n\n*Outstanding Claims*\n\n \n\nOn January 29, 2024, Shailesh\nBhushan, the former Chief Financial Officer of the Company, filed a complaint with the Employment Standards Branch of British Columbia\nagainst Akanda, Halo Collective Inc., and ANM, Inc. Mr. Bhushan alleges that Akanda failed to pay salary and invoices in the aggregate\namount of CAD $271,990 from the period December 2022 through November 2023. He also claims unpaid salary and invoices in the amount of\nCAD $251,193 from Halo and CAD $56,700 from ANM. and alleges that Akanda, Halo, and ANM are related employers who may be jointly and\nseverally liable for payment. The Employment Standards Branch has not yet requested a response to the complaint from Akanda. The Company\nintends to dispute the claim, including the allegations that the three companies are related employers.\n\n \n\nOn February 23, 2024,\nMr. Bhushan filed a Notice of Civil Claim in the Supreme Court of British Columbia against Akanda alleging constructive dismissal\nand claiming severance pay, general damages, aggravated and punitive damages, and allegedly unpaid salary and bonus. He also seeks special\ncosts. Mr. Bhushan has named Akanda directors Jatinder Dhaliwal, Katharyn Field, David Jenkins, and Harvinder Singh as defendants,\nwhom he alleges are personally liable for unpaid wages.\n\n \n\nIn the same claim, Mr. Bhushan\nalleges constructive dismissal against Halo Collective Inc., and claims severance pay, general damages, aggravated and punitive damages,\nallegedly unpaid salary and bonus, allegedly unpaid moving expenses, and alleges that the Halo stock he received as compensation lost\nvalue due to a share dilution. He has named certain current and former Halo directors as defendants and alleges they are personally liable\nfor unpaid wages. He also seeks special costs against Halo. Mr. Bhushan alleges that Akanda and Halo are a common employer and may\nbe jointly and severally liable for payment of damages.\n\n \n\nThe Company and the other\ndefendants filed their Response to Civil Claim on May 2, 2024. The Company denies all liability and takes the position that Mr. Bhushan\nwas terminated for just cause. The Company also disputes the amounts claimed, and denies that Akanda and Halo are a common employer.\nThe proceeding is at the discovery stage.\n\n \n\nDentons UK and Middle East\nLLP (“**Dentons**”) filed a debt claim against Canmart for legal services and advice invoiced between July 2022 and\nNovember 2022. Dentons sought £204,391.98 plus interest in the amount of £30,730.49 and other costs. Although Canmart\nadmits retaining Dentons’s services, Canmart denies any outstanding invoices and has asserted a counterclaim for costs incurred\nin defending a prior claim, any damages awarded to the claimant in the prior claim, any applicable interest, and costs. Dentons has replied\nto the counterclaim and this claim remains open.\n\n \n\nSee Notes 27 of our Audited\nFinancial Statements for the year ended December 31, 2025 for a description of other claims by and against the Company.\n\n  \n\n**C.**\n**Interests of Experts and Counsel**\n\n \n\nNot applicable.\n\n68"}