Good riddance we say….
“After much consideration and evaluation, we believe it provides the best outcome for all of our stakeholders, including our team members and our valued clients.”
We could agree more with the sentiment…“After much consideration and evaluation, we believe it provides the best outcome for all of our stakeholders, including …….clients
MJ Biz report
Akerna Corp., the parent company of pioneering cannabis technology company MJ Freeway, said Friday it’s exiting the marijuana industry based on headwinds much of the market is facing.
Denver-based Akerna is merging with cryptocurrency business Gryphon Digital Mining in an all-stock deal that will allow the latter company to go public on the Nasdaq.
Akerna also is selling its software business to POSaBIT Systems Corp., which offers payment solutions to the cannabis industry, for $4 million in cash.
Akerna CEO Jessica Billingsley told MJBizDaily via email that the moves were influenced by federal marijuana legalization happening “slower than anticipated” and “a changing macroeconomic climate that is unfavorable toward our financial obligations.”
“This decision was not taken lightly,” Billingsley added in a separate LinkedIn post.
Jessica Billingsley’s Post
Founder, CEO & Board Chair at Akerna Corp. | Public and Private Board Member | Contributor to Entrepreneur and Rolling Stone Magazines
Today we announced Akerna’s merger with Gryphon Digital Mining and the sale of our software business. This decision was not taken lightly. After much consideration and evaluation, we believe it provides the best outcome for all of our stakeholders, including our team members and our valued clients. Alongside many others in the cannabis industry, we have faced challenges and changes in the market. Through it all, our commitment to delivering the best products and services possible has never wavered. This will continue, as we believe these transactions will bring long-term benefits to all those involved. On a personal note, I couldn’t be more proud of the impact we have made on the cannabis industry since we first invented seed-to-sale tracking with the inception of our flagship product over 14 years ago. To our team members: our impact was the direct result of the years of hard work, dedication, and passion each of you put into this company. I want to express my sincerest gratitude to each and every one of you who have been a part of this journey. It has been the highest honor to lead such an incredible team. To our clients: it has been an honor to serve you and watch you grow. On the other side of these transactions, we will be able to continue to serve you through our MJ Platform, Ample Organics, and Leaf Data Systems products in their strategic combination with POSaBIT. I wish you all nothing but success. To all members of the cannabis industry: together, we have advocated for a safe, regulated industry, and gosh darn it, we have changed the world. And we will continue to do so. Keep your head up and continue to fight for what is right. As we move forward and complete these transactions over the coming months, we will continue to work diligently to make this transition as seamless as possible for our team members, partners, and clients. We remain dedicated to providing quality, excellence, and value to all our stakeholders, and we look forward to supporting the company’s new vision and mission. Thank you for your continued support
“After much consideration and evaluation, we believe it provides the best outcome for all of our stakeholders, including our team members and our valued clients.”
Akerna will sell to POSaBIT:
- MJ Freeway, a marijuana point-of-sale platform. In the LinkedIn post, Billingsley said the company invented seed-to-sale tracking more than 14 years ago.
- Leaf Data Systems, a seed-to-sale tracking software for U.S. cannabis markets.
- Ample Organics, a seed-to-sale tracking software for the Canadian market.
The software business combined with POSaBIT is expected to generate roughly $11 million in revenue and $6.8 million in gross profit during 2023.
The deal nearly doubles the number of merchant locations served by Kirkland, Washington-based POSaBIT.
“At a purchase price of 0.4 times 2022 estimated revenue, we are acquiring high-quality software assets at an attractive valuation,” Ryan Hamlin, CEO and co-founder of POSaBIT, said in a release.
“Despite the challenges facing our industry, our business is growing at a steady rate.
“We are adding new team members and our pipeline of both organic and strategic opportunities is expanding.”
The reverse merger with Gryphon Digital Mining will allow Akerna shareholders to access the bitcoin mining industry, according to a release, and the company will continue to be publicly traded.
If the deal goes through, Gryphon will become a wholly owned subsidiary of Akerna.
Gryphon equity holders are expected to own approximately 92.5% of the combined company, and current Akerna equity holders will own approximately 7.5%.
Akerna Corp. will be renamed Gryphon Digital Mining and headquartered in Las Vegas.
Rob Chang will serve as CEO of the combined company; Billingsley will retain a seat on the company’s board.
Akerna trades as KERN on the Nasdaq.
