Akerna Corp. Announces Sale of 365 Cannabis

Rhea-AI Summary

Akerna announced the successful completion of its sale of 365 Cannabis to 365 Holdco LLC on January 11, 2023. The total transaction consideration is approximately $2.8 million, including a cash payment of $500,000 and the termination of an earn-out payment valued at $2,283,806. A portion of the cash payment, $100,000, is being held back for post-closing adjustments. Akerna, a leader in cannabis compliance and data solutions, continues to enhance the industry with its technology and consulting services.

Positive

• Akerna received approximately $2.8 million from the sale of 365 Cannabis.
• The sale allows Akerna to potentially streamline operations and focus on core business areas.

Negative

• The earn-out payment termination indicates potential previous performance issues with 365 Cannabis.

Akerna’s sale of 365 Cannabis to 365 Holdco LLC closed today January 11. Akerna received consideration for 365 with an aggregate value of approximately $2.8 million.

DENVER, Jan. 11, 2023 (GLOBE NEWSWIRE) -- Akerna (Nasdaq: KERN) today announced its sale of 365 Cannabis to 365 Holdco LLC (“365 Holdco”). The sale was completed pursuant to the terms and conditions of stock purchase agreement by and between Akerna and 365 Holdco (the “SPA”) entered into by the parties on January 11, 2023. Under the terms of the SPA, as consideration for the sale of all of the outstanding shares of common stock of The NAV People, Inc (dba as 365 Cannabis), Akerna received a cash payment of $500,000 and the parties agreed to terminate an earn-out payment due and payable to the principals of 365 Holdco LLC with a deemed value of $2,283,806. $100,000 of the cash payment is being held back by 365 Holdco in accordance with the terms of the SPA for post-closing accounts payable adjustments and certain indemnification claims through April 30, 2023.

About Akerna 

Akerna (Nasdaq: KERN) is an enterprise SaaS company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. 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, Leaf Data Systems, Trellis, Ample Organics, Viridian Sciences and 365 Cannabis.

For more information, visit https://www.akerna.com/.

Contacts:

Akerna
Meghan Shine, VP of Strategic Communications & Marketing
pr@akerna.com

Core IR
Peter Seltzberg, SVP Capital Markets and Advisory
516.419.9915
peters@coreir.com

Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including: market conditions; Akerna’s ability to effectuate the Reverse Stock Split; and other risks set forth in Akerna’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as other documents that Akerna files with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Akerna disclaims any obligation to update these forward-looking statements because of new information, future events or circumstances or other factors.

FAQ

What was the value of Akerna's sale of 365 Cannabis?

Akerna's sale of 365 Cannabis to 365 Holdco LLC was valued at approximately $2.8 million.

When did Akerna close the sale of 365 Cannabis?

Akerna closed the sale of 365 Cannabis on January 11, 2023.

What are the terms of the sale between Akerna and 365 Holdco?

The sale involved a cash payment of $500,000 and the cancellation of a $2,283,806 earn-out payment.

What is the stock symbol for Akerna?

Akerna trades under the stock symbol KERN on Nasdaq.

What does Akerna do?

Akerna is an enterprise SaaS company dedicated to serving the cannabis, hemp, and CBD industry.