I just noted that Shadows: Awakening has just popped up for pre-order over on Steam. It's nice that they finished off the previous one before starting a new one (as I am lead to believe it, heretic kingdoms will never get its second book).
I can't find any information about whether it will be released here, or if they will even bother finishing this one.

Shadows: Awakening is a remake of Shadows: Heretic Kingdoms that will also include the never-materialized second book. Owners of Shadows: Heretic Kingdoms should get this one for free.

Gragar is right - more info can be found here;

https://www.gog.com/forum/general/status_of_shadows_heretic_kingdoms_answer_from_gog_needed/post15

I'd hang fire if I were you - it seems that the offer of the free upgrade was only valid for peeps who bought he game before the 24th July, 2017. Full info here;

https://www.gog.com/forum/heretic_kingdoms_series/shadows_heretic_kingdoms_book_ii_will_be_a_separate_product_soon/post1

I know this studio can make a great ARPG as they made Vikings: Wolves of Midgard.

Shadows: Heretic Kingdoms was not that great and I hope they fixed the problems with it.

That info has been deprecated for quite some time. There will be no seperate book 2.

So what should I do? I still have Shadows wishlisted. Should I 86 it and wait for the remake?

Seems to be the best option at the moment. There is mixed information, not much point blowing cash at this point, the new one might not even be any good. Play wolves of Midgard in the meantime. I did the first few levels and it was ok.

I got a copy of Awakenings for free, and access to the beta, but I don't usually play single player betas.

Haven't checked my library to see if it is the same on GOG or not. I bought two copies because I'm a big league yuge fan of the Kult universe.

EDIT: Looks like the beta access is only on Steam for me?

Yes I know but the convoluted point the two links I posted make is that those who originally bought Book 1 would get Book 2 for free. When it was announced that they were going to make a new game which will basically be both Book 1 and Book 2 combined then they verified that the people who originally bought Book 1 was going to get the new game for free. Everyone else was going to have to pay for it which was why I suggested it might be best to hang fire on buying Shadows: Heretic Kingdoms now.