Cannabis tech company Akerna moves to raise $10 million as stock falls

Be at the forefront of cannabis and psychedelics science and innovation. Register today & Save $200 on tickets to The Emerald Conference by MJBiz Science, April 1-3 in San Diego.

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.

Business leaders need reliable industry data and in-depth analysis to make smart investments and informed decisions in these uncertain economic times.

Get your 2023 MJBiz Factbook now!

Featured Inside:
  • 200+ pages and 50 charts with key data points
  • State-by-state guide to regulations, taxes & opportunities
  • Segmented research reports for the marijuana + hemp industries
  • Accurate financial forecasts + investment trends


Stay ahead of the curve and avoid costly missteps in the rapidly evolving cannabis industry.

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 prefunded 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.