Colorado-based marijuana technology company Akerna raised $20 million of capital to support a recently announced acquisition, future growth and investments in its enterprise software infrastructure.
The debt financing with existing institutional investors follows Akerna’s $17 million deal to buy 365 Cannabis, a Las Vegas-based marijuana business management software company.
Akerna, which trades on the Nasdaq as KERN, said it will net $14.6 million from the financing. The details:
- The three-year notes have a face value of $20 million, bear no interest but are being issued at a discount of 10%, or $2 million. The notes are to be repaid in monthly installments beginning Jan. 1, 2022.
- The notes will be convertible into Akerna stock at a price of $4.05 a share. Akerna currently is trading at about $2.70 a share.
- The net proceeds of $14.6 million reflects deductions from the loan discount and $3.3 million to pay off previous convertible notes and other expenses.
Akerna indicated that $4.5 million of the proceeds from the capital raise will be used to close the company’s acquisition of 365 Cannabis.