Akerna Corp. (NASDAQ: KERN), a cannabis-focused software company, announced on Tuesday it had signed a $ 20 million convertible debt financing agreement to purchase securities with existing institutional investors who hold the Company’s currently outstanding convertible notes.
The net proceeds the issuance of the new senior secured convertible notes will be used to support Akerna’s ongoing growth initiatives and continued investment in current and future technological infrastructure.
Funding takes the form of notes, which are convertible into Akerna common stock at a conversion price of $ 4.05 per share. The notes, due October 5, 2024, have a total face value of $ 20 million, bear interest only in the event of default, and must be repaid in monthly installments beginning January 1, 2022.
Net proceeds from the Notes are expected to be approximately $ 14.6 million, which includes deductions for the initial issue discount, payment of approximately $ 3.3 million of amounts due to repay the convertible notes. and payment of expenses. The company’s unaudited pro forma cash balance after the issuance of the notes is expected to be approximately $ 19.8 million, which includes the deduction of the $ 4.5 million payment related to the closing of the l acquisition of 365 Cannabis by the company.
More recent news from Akerna:
Akerna completes $ 17 million acquisition of 365 Cannabis, an ERP based on Microsoft’s Dynamics 365 Biz Central
Akerna to acquire 365 cannabis for $ 17 million
Akerna Report: Friday Labor Day weekend grossed $ 90.1 million in marijuana sales
Akerna shares were trading up 2.22% to $ 2.76 per share at the time of writing on Tuesday morning.