The supplier of cannabis payments platforms has decided to focus on other ventures
Walking away from the cannabis industry at this time may not seem like a move to pursue, but Akerna Corp appears to be determined to get out of the box. The cannabis company recently announced its merger with Gryphon Digital Mining, Inc. in an all-stock transaction. As the merger with Gryphon is completed, Akerna said it is selling its POSaBIT Systems Corporation software business, a provider of payments infrastructure in the cannabis industry.
Gryphon is a carbon-neutral Bitcoin mining company. Through an agreement of merger to create a carbon-neutral Bitcoin mining company committed to ESG (environment, social issues, and governance), the firm believes Akerna will become the ideal partner. POSaBIT will acquire MJ Freeway, including the MJ Platform and Leaf Data System brands, and Ample Organics.
In connection with the two transactions, Akerna signed two separate definitive agreements. The first is based on a securities purchase agreement for the sale of Akerna’s MJ Freeway and Ample Organics business units to POSaBIT for $4 million in cash. The company intends to use those funds to pay down its remaining outstanding accounts payable and pay down any remaining principal balance on its outstanding senior secured convertible notes.
The second agreement, based on a plan of merger, will result in Gryphon becoming a wholly owned subsidiary of Akerna in a transaction in which all shares will be owned by Gryphon. Once the proposed merger is completed, Gryphon’s existing shareholders are expected to own approximately 92.5% of the combined company. The combined company is expected to continue to be listed on Nasdaq.