A Los Angeles-based financial services startup backed by a notable investor announced Thursday that it has reached an agreement to purchase the cannabis software firm Agrisoft Development Corp.
Kind Financial – which has raised $2 million from investors, including a member of the family that owns the Philadelphia Flyers – said its acquisition of Agrisoft will provide it with “a critical platform” to provide banking services to cannabis companies.
Terms of the deal were not disclosed, but Agrisoft CEO Charles Ramsey said that a third party valued his company at about $10 million last fall.
Agrisoft has “hundreds” of customer licenses spread across more than 10 states and Canada, including medical cannabis dispensaries, recreational marijuana stores, infused product manufacturers and commercial cultivators, Ramsey said.
As part of the deal, Agrisoft and Kind had to reconcile a previous arrangement with Surna, which planned to acquire a majority interest in Agrisoft in January for $4 million. That deal never fully went through, Ramsey said on Thursday.
Surna will continue as a “strategic partner” with Kind Agrisoft, a new company that will be a subsidiary of Kind Financial, Ramsey said. Details of the arrangement were outlined in documents filed with the Securities and Exchange Commission by Surna, which is a publicly traded company.