Akerna Corp. (“Akerna” and the “Company) (Nasdaq: KERN), a leading enterprise software company, today announced it has entered into a securities purchase agreement for a US $20 million convertible debt financing with existing institutional investors who hold the Company’s currently outstanding convertible notes.
The net proceeds from the issuance of the new senior secured convertible notes (the “Notes”) will be used to support Akerna’s ongoing growth initiatives and continued investment in current and future technology infrastructure.
The financing is in the form of Notes, which are convertible into shares of common stock of Akerna at a conversion price of $4.05 per share. The Notes, maturing on October 5, 2024, have an aggregate face value of $20 million and are being issued with an original issue discount of 10%. The Note do not bear interest except upon the occurrence of an event of default and are to be repaid in monthly installments beginning on January 1, 2022.
Net proceeds from the Notes is expected to be approximately $14.6 million, which includes deductions for the original issue discount, the payment of approximately $3.3 million of amounts owing to payoff the prior convertible notes and payment of expenses. The Company’s unaudited proforma cash balance following 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 Company’s acquisition of 365 Cannabis.
For additional details regarding the securities purchase agreement and the Notes, please reference the Form 8-K filed with the U.S. Securities and Exchange Commission on October 5, 2021.
