Struggling cannabis technology company Akerna is seeking to raise $10 million in capital in part to meet its debt obligations and other expenses.
The Denver-based company, which provides seed-to-sale tracking and other compliance software under MJ Freeway, said in a news release that it expects to generate the additional capital through a public offering of stock and warrants for 23 cents a unit.
Akerna stock, which trades on Nasdaq as KERN, fell 50% on the news to less than 15 cents a share as of midday Thursday.
The company said in a recent regulatory filing that its ability to continue as an ongoing concern depends on the success of a financial restructuring plan and its ability to raise additional capital.
Akerna recently cut 59 employees as part of its financial restructuring.
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According to a news release, the public offering, which is expected to close around July 5, includes:
- 29.4 million units that consist of 29.4 million shares of stock and warrants to purchase up to another 29.4 million shares of stock at 23 cents a share.
- 14.1 million pre-funded units that consist of warrants that can be immediately exercised at less than 1 cent a share for 14.1 million shares of stock, plus warrants to purchase another 14.1 million shares of stock at 23 cents per share.
The offering also gives the underwriters a 45-day option to purchase additional stock and warrants totaling up to 13 million shares of stock.