Akerna Corp. KERN announced the pricing of an underwritten public offering of 29.38 million units of the company consisting of 29.38 million shares of common stock together with common stock warrants to purchase up to 29.38 million shares of common stock and 14.09 million pre-funded units, consisting of 14.09 million pre-funded warrants, with each pre-funded warrant exercisable for one share of common stock, together with common warrants to purchase up to 14.09 million shares of common stock.
The units are being sold at a public offering price of $0.23 per unit and the pre-funded units are being sold at a public offering price of $0.2299 per pre-funded unit. The pre-funded warrants will be immediately exercisable at a nominal exercise price of $0.0001 or on a cashless basis and may be exercised at any time until all of the pre-funded warrants are exercised in full.
The common warrants will have an exercise price of $0.23 per share subject to certain adjustments, will be immediately exercisable and will expire five years from the date of issuance. Additionally, the company has granted the underwriters a 45-day option to purchase up to an additional 6.52 million shares of common stock and/or 6.52 million common warrants and/or 6.52 million pre-funded warrants to cover over-allotments, if any, with the total over-allotments not to exceed 13.04 million shares, including the common stock underlying the common warrants and pre-funded warrants.
The gross offering proceeds to the company from the offering, before deducting the underwriting discounts and commissions and other estimated offering expenses, and excluding the exercise of any warrants, are expected to be approximately $10 million. The offering is expected to close on or about July 5, 2022, subject to customary closing conditions.
The company intends to use the net proceeds from this offering for general corporate purposes, including servicing our ongoing debt obligations under our convertible notes, working capital, marketing, product development and capital expenditures.
A.G.P./Alliance Global Partners is acting as sole book-running manager for the offering.
Akerna shares were trading 51.75% at 14 cents per share at the time of writing Thursday morning.
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