The cash and stock transaction will bring on board a seed-to-sale platform company under the umbrella of Akerna. The public company highlighted Ample Organics’ capability to win a contract with St. Vincent and The Grenadines earlier this month to provide a national tracking platform through its AmpleCentral program.
Jessica Billingsley, CEO of Akerna, said integrating this purchase will give the company a stronger position in its pursuit to build a global technology platform.
In an email to the Investing News Network (INN) Billingsley said she’s confident the deal will close based on the synergy created between the two companies. The executive also praised its target acquisition for its partnership with the Caribbean nation.
“We anticipate the award will drive accelerated growth as international markets continue to pass legislation to legalize cannabis, and we look forward to working with Saint Vincent and the Grenadines,” Billingsley said.
“We believe this transaction will result in tremendous synergies and opportunities for both Ample Organics and Akerna,” John Prentice, founder and CEO of Ample Organics, said in a statement.
Akerna has committed to pay C$7.5 million in cash and C$42.5 million worth of Akerna stock. There will be an additional C$10 million of a stock-based consideration attached to targets the company must meet in 2020.
Shares of Akerna jumped during Wednesday’s trading session following the deal announcement. As of 1:30 p.m. EST, the company value was up 5.18 percent for a price per share of US$11.63.
The AmpleCentral program is designed to act as a “jurisdictional track-and-trace database” for governments in nascent cannabis markets to guarantee compliance and standards of its regulations.
“This technology connects data points across the national cannabis supply chain, providing regulators with the information necessary to assure public, product, and patient safety,” Ample Organics previously stated.
Following the confirmation of the partnership with St. Vincent and the Grenadines, Prentice said this would represent the first implementation of a national tracking system in the global cannabis industry.
According to Akerna, Ample Organics is projected to produce C$11.5 million in revenue for its 2020 operations. The company is expecting to close this transaction by Q1 2020.
Back in July, Ample Organics faced a significant round of layoffs, with approximately 20 employees losing their positions at the time, according to a report from BetaKit.
“It’s been an interesting time in the cannabis industry. There’s a lot … of turmoil happening. I think that capital is drying up in the space, and really Ample is a bellwether for everything else that’s going on in the industry,” Prentice said at the time of the cuts.
Previously, Billingsley told INN the firm’s NASDAQ listing provided it with significant opportunities for strategic mergers and acquisitions.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Recreational cannabis sales in Canada are on the rise, according to new Statistics Canada figures.
Also this past trading week, a cannabis producer in Canada was forced to make various staff layoffs.
DEADLINE ALERT for ACB and PGEN: The Law Offices of Frank R. Cruz Reminds Investors of Class Actions on Behalf of Shareholders
The Law Offices of Frank R. Cruz reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.
Investors suffering losses on their investments are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights in these class actions at 310-914-5007 or by email to email@example.com .
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) will hold its 2020 Third Quarter Earnings Conference Call on Thursday, November 5, 2020 at 8:30 a.m. EST. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks.
A live audio webcast of the earnings call will be available on the Company’s website at https://ir.thecronosgroup.com/events-presentations . The webcast of the call will be archived for replay on the Company’s website.
BioHarvest Sciences Inc. Appoints World Renowned Medical Physician and Nutritionist to Company Advisory Board
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) announces that it has added Dr. David Brady as a member of its Advisory Board. Dr. Brady will act as a strategic advisor to the company in the area of developing and bringing to market superior science based functional nutraceutical product.
“The addition of Dr. Brady to our Advisory Board adds further credibility to the science behind our products such as VINIA® which is currently being sold in Israel and will be launched in the US in Q1 2021, as well as our unique pipeline of superfruits nutraceutical products,” stated BioHarvest Sciences CEO Ilan Sobel. “We look forward to embracing Dr. Brady’s wealth of clinical experience and knowledge of the industry and we are confident he will make a significant contribution to ensuring that we continue to deliver superior health and wellness solutions for our customers with our disruptive BioFarming technology. We will continue to assemble the best team of advisors to bring the benefits of our BioFarming technology to the world.” Dr. David Brady added: “I am honoured to join this exciting journey that BHSC has embarked on by applying its disruptive BioFarming technology to the nutraceuticals market and I look forward to working with the talented management team to bring superior science-based nutraceutical products to market”.
ROSEN, LEADING INVESTOR COUNSEL, Reminds Aurora Cannabis Inc. Investors of Important December 1 Deadline in Securities Class Action; Encourages Investors with Losses in Excess of $100K to Contact Firm – ACB
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Aurora Cannabis Inc. (NYSE: ACB) between February 13, 2020 and September 4, 2020, inclusive (the “Class Period”), of the important December 1, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Aurora investors under the federal securities laws.
To join the Aurora class action, go to http://www.rosenlegal.com/cases-register-1965.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email firstname.lastname@example.org or email@example.com for information on the class action.