Akerna Announces $20M Convertible Debt Financing From Existing Institutional Investors

Akerna Corp. KERN, a cannabis-focused software company, reported Tuesday it has signed a securities purchase agreement for a $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 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, 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.

More recent news from Akerna:

Akerna Closes $17M Acquisition Of 365 Cannabis, An ERP Built On Microsoft's Dynamics 365 Biz Central

Akerna To Acquire 365 Cannabis For $17M

Akerna Report: Friday Ahead Labor Day Weekend Grossed $90.1M In Marijuana Sales

Price Action

Akerna’s shares were trading 2.22% higher at $2.76 per share at the time of writing Tuesday morning.

Photo: Courtesy of Diyahna Lewis on Unsplash