DENVER, Oct. 5, 2021 /PRNewswire/ -- Akerna Corp.
("Akerna" and the "Company) (Nasdaq: KERN), a leading enterprise
software company, today announced it has entered into a securities
purchase agreement for a US $20
million convertible debt financing with existing
institutional investors who hold the Company's currently
outstanding convertible notes.
The net proceeds from the issuance of the new senior secured
convertible notes (the "Notes") will be used to support
Akerna's ongoing growth initiatives and continued investment in
current and future technology infrastructure.
The financing is in the form of Notes, which are convertible
into shares of common stock of Akerna at a conversion price of
$4.05 per share. The Notes, maturing
on October 5, 2024, have an aggregate
face value of $20 million and are
being issued with an original issue discount of 10%. The Note do
not bear interest except upon the occurrence of an event of default
and are to be repaid in monthly installments beginning on
January 1, 2022.
Net proceeds from the Notes is expected to be approximately
$14.6 million, which includes
deductions for the original issue discount, the payment of
approximately $3.3 million of amounts
owing to payoff the prior convertible notes and payment of
expenses. The Company's unaudited proforma cash balance
following the issuance of the Notes is expected to be approximately
$19.8 million, which includes the
deduction of the $4.5 million payment
related to the closing of the Company's acquisition of 365
Cannabis.
For additional details regarding the securities purchase
agreement and the Notes, please reference the Form 8-K filed with
the U.S. Securities and Exchange Commission on October 5, 2021.
About Akerna
Akerna (Nasdaq: KERN) is an enterprise
software company focused on compliantly serving the cannabis, hemp,
and CBD industries. Based in Denver,
Colorado, the Company's mission is to create the world's
most transparent and accountable supply chain by building a
cannabis technology ecosystem connecting data points across the
global cannabis supply chain from seed to sale to self.
Using connected data and information to propel the cannabis
industry forward, Akerna empowers businesses, governments,
patients, and consumers to make smart decisions. The Company's
cornerstone technology, MJ Platform, the world's leading
infrastructure as a service platform, powers retailers,
manufacturers, brands, distributors, and cultivators. Akerna also
offers a complete suite of professional consulting services and
data analytics for businesses as well as solo sciences, MJ Freeway,
Leaf Data Systems, Trellis, Ample Organics, Viridian Sciences and
365 Cannabis.
Forward-Looking Statements
Certain statements made in
this release and any accompanying statements by management are
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. When used in this press release, the
words "estimates," "projected," "expects," "anticipates,"
"forecasts," "plans," "intends," "believes," "seeks," "may,"
"will," "should," "future," "propose" and variations of these words
or similar expressions (or the negative versions of such words or
expressions) are intended to identify forward-looking statements.
Such forward-looking statements include but are not limited to
statements regarding the closing of the issuance of the Notes under
the securities purchase agreement, the expected use of net
proceeds, the Company's expected cash balance following the
issuance of the Notes, Akerna's future business plans, Akerna's
potential business strengths in the market and any other statements
expressing the views of Akerna's management on future business
results or strategy. These forward-looking statements are not
guarantees of future performance, conditions or results, and
involve a number of significant known and unknown risks,
uncertainties, assumptions and other important factors, many of
which are outside Akerna's control, that could cause actual results
or outcomes (including, without limitation, the results of Akerna's
contracts, strategic initiatives, and business plans as described
herein) to differ materially from those discussed in the
forward-looking statements. Important factors, among others that
may affect actual results or outcomes, include (i) Akerna's ability
to recognize the anticipated benefits of being a public company,
(ii) competition, (iii) Akerna's ability to grow and manage growth
profitably, (iv) Akerna's ability to maintain relationships with
customers and suppliers and retain its management and key
employees, (v) costs related to being a public company, (vi)
changes in applicable laws or regulations, (vii) Akerna's ability
to identify, complete and integrate acquisitions, including 365
Cannabis, and achieve expected synergies and operating efficiencies
in connection with acquired businesses, (viii) and other risks and
uncertainties disclosed from time to time in Akerna's filings with
the U.S. Securities and Exchange Commission, including those under
"Risk Factors" therein. Actual results, performance, or
achievements may differ materially, and potentially adversely, from
any projections and forward-looking statements and the assumptions
on which those vary from forward-looking statements are based.
There can be no assurance that the data contained herein is
reflective of future performance to any degree. You are cautioned
not to place undue reliance on forward-looking statements as a
predictor of future performance as projected financial and other
information, are based on estimates and assumptions that are
inherently subject to various significant risks, uncertainties and
other factors, many of which are beyond Akerna's control. All
information herein speaks only as of the date hereof, in the case
of information about Akerna, or the date of such information, in
the case of information from persons other than Akerna. Akerna
undertakes no duty to update or revise the information contained
herein. Forecasts and estimates regarding Akerna's industry and end
markets are based on sources believed to be reliable; however,
there can be no assurance these forecasts and estimates will prove
accurate in whole or in part.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy securities of the Company nor shall
there be any sell of securities of the Company in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. The securities
to be issued in connection with the transactions described in this
press release have not been and will not be registered under the
Securities Act of 1933, as amended, or any applicable state
securities laws and may not be offered or sold absent such
registration or an available exemption therefrom.
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SOURCE Akerna