Akerna Prices $5M Private Placement Of Convertible Redeemable Preferred Stock

Akerna Corp. KERN has entered into a securities purchase agreement with certain institutional investors to purchase 400,000 shares of Series A convertible redeemable preferred stock and 100,000 shares of Series B convertible redeemable preferred stock.

Each share of Series A and Series B preferred stock has a purchase price of $9.50, representing an original issue discount of 5% of the $10.00 stated value of each share. Each share of Series A and Series B preferred stock is convertible into shares of the company’s common stock at an initial conversion price of $0.25 per share. Shares of the Series A and Series B preferred stock are convertible at the option of the holder at any time following the company’s receipt of stockholder approval of a reverse stock split of the company’s shares of common stock.

The company and the holders of the Series A and Series B preferred stock also entered into a registration rights agreement to register the resale of the shares of common stock issuable upon conversion of the Series A and Series B preferred stock. Total gross proceeds from the offerings, before deducting discounts, placement agent’s fees and other estimated offering expenses, is $5.0 million.

The closing of the offering is expected to occur on or about October 4, 2022, subject to the satisfaction of customary closing conditions.

A.G.P./Alliance Global Partners is acting as the exclusive financial advisor in connection with the offering.

Price Action

Akerna shares traded 4.56% higher at $0.94 per share at the time of writing Monday morning.

Related News

Akerna Q2 Revenue Grows 24% YoY, What About Net Loss?

Photo: Courtesy of 2H Media on Unsplash