Akerna Shares Slide Following Reverse Stock Split

Akerna KERN initiated 20-for-1 reverse stock split of its shares of common stock, $0.0001 par value that became effective on November 8, 2022 at 12:01 a.m. Eastern Standard Time.

The reverse stock split is primarily intended to bring the company into compliance with the minimum bid price requirement for maintaining its listing on the Nasdaq Capital Market. The new CUSIP number for the common shares following the reverse stock split will be 00973W300.

On November 5, 2022, the company’s board of directors approved that the reverse stock split at a ratio of 20-for-1 should go effective at 12:01 a.m. on November 8, 2022, subject to approval by the company’s stockholders. At the company’s special meeting of stockholders on November 7, 2022, the company’s stockholders approved the proposal to authorize the company, acting by its board, to effect the reverse stock split.

The reverse stock split has reduced the number of common shares issued and outstanding from approximately 80.4 million to approximately 4.0 million. Because the reverse stock split did not reduce the number of authorized common shares, the effect of the reverse stock split was to increase the number of common shares available for issuance relative to the number of common shares issued and outstanding. The reverse stock split did not alter the par value of our common shares or modify any voting rights or other terms of the company’s common shares.

Price Action

Akerna shares were trading 15.18% lower at $1.34 per share at the time of writing Tuesday morning.

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