Akerna Corp. (Nasdaq: KERN), a leading compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), has announced a public offering of 5,000,000 shares of its common stock at a public offering price of $2.40 per share. The Company expects that the gross proceeds of the offering of the shares will be approximately $12,000,000.
Akerna is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. Using connected data and information the company’s solutions allow businesses, governments, patients, and consumers to make smart decisions. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq.
In September, CEO Jessica Billingsley said on the company’s earnings call, “We are pleased to share that our year-over-year software revenues are up 21%. While consulting bookings increased year-over-year, delivery delays in the fourth quarter due to COVID-19 caused consulting revenue to come in at a modest 3% increase. We expect to recognize the delayed revenue this coming fiscal year. As expected, our operating expenses increased for the fiscal year as we digested our acquisition. Our cost structure is improving. And we expect it will continue to improve through this coming fiscal year as a result of our successful integration, realizing efficiencies and, of course, economies of scale.”
In addition, CFO John Fowle said, “Our fourth quarter and fiscal year 2020 results were highlighted by solid sales execution and continued market demand. In the fourth quarter, total revenue declined 17% to $3 million, a decrease driven entirely by a decline in our consulting revenue related to delays associated with COVID-19. For the year, our total revenue grew 16% to $12.6 million. With regard to software revenue, in the fourth quarter, software revenue grew 36% to $2.8 million. For the year, our software revenue grew 21% to $10 million. The growth in the quarter and for the year was once again driven by increased demand from both new and existing customers, combined with strong sales execution across channels.”
Akerna said it intends to use the net proceeds from the offering to fund its growth initiatives, including product development, sales and marketing, strategic acquisitions, working capital, and general corporate purposes.