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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 10/03/22 Akerna Corp. 8-K:1,3,5,810/03/22 16:1M EdgarAgents LLC/FA |
Document/Exhibit Description Pages Size
1: 8-K Current Report HTML 56K
2: EX-3.1 Form of Certificate of Designation of Preferences, HTML 116K
Rights and Limitations of Series A Convertible
Redeemable Preferred Stock
3: EX-3.2 Form of Certificate of Designation of Preferences, HTML 138K
Rights and Limitations of Series B Convertible
Redeemable Preferred Stock
4: EX-10.1 Form of Securities Purchase Agreement Between HTML 253K
Akerna Corp. and the Investors Thereto, Dated
October 3, 2022
5: EX-10.2 Form of Registration Rights Agreement by and Among HTML 134K
Akerna Corp. and the Investors Named Therein,
Dated October 3, 2022
6: EX-99.1 Press Release of Akerna Corp. Dated October 3, HTML 14K
2022 Announcing the Pricing of the Offering
11: R1 Cover HTML 54K
14: XML IDEA XML File -- Filing Summary XML 14K
12: XML XBRL Instance -- ea166553-8k_akernacorp_htm XML 21K
13: EXCEL IDEA Workbook of Financial Reports XLSX 8K
8: EX-101.DEF XBRL Definitions -- kern-20221003_def XML 75K
10: EX-101.LAB XBRL Labels -- kern-20221003_lab XML 104K
9: EX-101.PRE XBRL Presentations -- kern-20221003_pre XML 72K
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15: JSON XBRL Instance as JSON Data -- MetaLinks 27± 36K
16: ZIP XBRL Zipped Folder -- 0001213900-22-060985-xbrl Zip 178K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): i October 3, 2022
| i AKERNA CORP. |
| (Exact name of registrant as specified in its charter) |
| i Delaware | i 001-39096 | i 83-2242651 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| i 1550 Larimer Street, i #246, i Denver, i Colorado | i 80202 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: ( i 888) i 932-6537
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| i ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| i ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| i ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| i ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Capital Market | ||||
| Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. i ☐
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Item 1.01. Entry into a Material Definitive Agreement.
Preferred Stock Transaction
On October 3, 2022, Akerna Corp., a Delaware corporation (“the “Company”), entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”), pursuant to which the Company agreed to issue and sell, in a private placement (the “Offering”), 400,000 shares of the Company’s Series A Convertible Redeemable Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”), and 100,000 shares of the Company’s Series B Convertible Redeemable Preferred Stock, par value $0.0001 per share (the “Series B Preferred Stock”, and together with the Series A Preferred Stock, the “Preferred Stock”), at an offering price of $9.50 per share, representing a 5% original issue discount (“OID”) to the stated value of $10 per share, for gross aggregate proceeds of $5,000,000 million in the aggregate for the Offering, before the deduction of discounts, fees and offering expenses. The shares of Preferred Stock will be convertible, at a conversion price of $0.25 per share (subject in certain circumstances to adjustments), into shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), at the option of the holders of the Preferred Stock and, in certain circumstances, by the Company. The Purchase Agreement contains customary representations, warranties and agreements by the Company and customary conditions to closing. The Offering is expected to close on or about October 4, 2022.
The Company intends to call a special meeting of stockholders to consider an amendment (the “Amendment”) to the Company’s Amended and Restated Certificate of Incorporation (the “Charter”), to effect a reverse stock split of the outstanding shares of Common Stock by a ratio to be determined by the Board of Directors of the Company within a range to be specified in the proposal put to the stockholders for approval of the Amendment (the “Reverse Stock Split”). The Investors have agreed in the Purchase Agreement to not transfer, offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of the shares of the Preferred Stock until the Reverse Stock Split, to vote the shares of the Series A Preferred Stock purchased in the Offering in favor of such Amendment and to vote the shares of the Series B Preferred Stock purchased in the Offering in a manner that “mirrors” the proportions on which the shares of Common Stock (excluding any shares of Common Stock that are not voted), the Company’s special voting share (excluding any proportion of the special voting share that is not voted) and Series A Preferred Stock are voted on the Reverse Stock Split. The Reverse Stock Split requires the approval of the majority of the issues and outstanding shares entitled to vote on the matter. Because the Series B Preferred Stock will automatically and without further action of the purchaser be voted in a manner that “mirrors” the proportions on which the shares of Common Stock (excluding any shares of Common Stock that are not voted), the Company’s special voting share (excluding any proportion of the special voting share that is not voted) and Series A Preferred Stock are voted on the Reverse Stock Split, abstentions by common stockholders will not have any effect on the votes cast by the holders of the Series B Preferred Stock.
Pursuant to the Purchase Agreement, the Company will file certificates of designation (the “Certificates of Designation”) with the Secretary of the State of Delaware designating the rights, preferences and limitations of the shares of Series A Preferred Stock and Series B Preferred Stock. The Certificate of Designation for the Series B Preferred Stock will provide, in particular, that the Series B Preferred Stock will have no voting rights other than the right to vote as a class on certain specified matters and the right to cast 4,000 votes per share of Series B Preferred Stock on the Reverse Stock Split proposal.
The holders of Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to dividends actually paid, if any, on shares of Common Stock. The Preferred Stock is convertible, at the option of the holders and, in certain circumstances, by the Company, into shares of Common Stock at a conversion price of $0.25 per share. The conversion price can be adjusted pursuant to the Certificates of Designation for stock dividends and stock splits, subsequent rights offering, pro rata distributions of dividends or the occurrence of a fundamental transaction (as defined in the applicable Certificate of Designation).
The holders of the Series A and Series B preferred stock have the right to require the Company to redeem their shares of preferred stock for cash at 105% of the stated value of such shares commencing after the earlier of the receipt of stockholder approval of the Amendment and 60 days after the closing of the issuances of the Series A and Series B preferred stock and until 90 days after such closing. The Company has the option to redeem the Series A and Series B preferred stock for cash at 105% of the stated value of such shares commencing after the 90th day following the closing of the issuances of the Series A and Series B preferred stock, subject to the holders’ rights to convert the shares prior to such redemption.
The proceeds of the Offering will be held in an escrow account, along with the additional amount that would be necessary to fund the 105% redemption price until the expiration of the redemption period for the Preferred Stock, as applicable, subject to the earlier payment to redeeming holders. Upon expiration of the redemption period, any proceeds remaining in the escrow account will be disbursed to the Company.
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In connection with the Offering, on October 3, 2022, the Company and the Investors entered into a Registration Rights Agreement (the “Registration Rights Agreement”), pursuant to which the Company is required to file a registration statement with the Securities and Exchange Commission to register for resale the shares that are issued upon the potential conversion of shares of Preferred Stock. The registration statement will be filed with the Securities and Exchange Commission on or before the earlier of 10 calendar days following the date of the stockholder meeting held to seek approval of the Amendment and the 70th calendar day following the date of the Registration Rights Agreement.
In connection with the Offering, the Company agreed to pay A.G.P./Alliance Global Partners (the “Financial Advisor”) an aggregate cash fee equal to $300,000 and to reimburse the Financial Advisor for certain of its expenses in an amount not to exceed $100,000.
Under the Purchase Agreement, for a period of 60 days from the date of the Purchase Agreement, the Company and its subsidiaries are prohibited from issuing or entering into any agreement to issue or announce the issuance or proposed issuance of any shares of preferred stock if the Company, any shares convertible, exchangeable or exercisable for shares of preferred stock of the Company or any debt securities. Further, from the date of the Purchase Agreement until fifteen (15) days thereafter, neither the Company nor any of its subsidiaries shall issue, sell, enter into any agreement to issue or sell or announce the issuance or sale or proposed issuance or sale of any shares of Common Stock or Common Stock Equivalents (as defined in the Purchase Agreement); provided, that, notwithstanding the foregoing, the Company may enter into and effect sales pursuant to an at-the-market facility with the Financial Advisor. The above limitations on issuances of stock under the Purchase Agreement do not apply to Exempt Issuances as defined in the Purchase Agreement.
The foregoing summarizes the material terms of the Purchase Agreement, the Registration Rights Agreement, and Certificates of Designation and are subject to, and qualified in their entirety by, forms of such documents attached as Exhibits 10.1, 10.2, 3.1, and 3.2, respectively, to this Current Report on Form 8-K, which are incorporated herein by reference.
The representations, warranties and covenants contained in the Purchase Agreement were made only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to the agreements and are subject to limitations agreed upon by the contracting parties. Accordingly, the Purchase Agreement is incorporated herein by reference only to provide investors with information regarding the terms of the Purchase Agreement and not to provide investors with any other factual information regarding the Company or its business and should be read in conjunction with the disclosures in the Company’s periodic reports and other filings with the Securities and Exchange Commission.
Waiver regarding Convertible Notes
On September 27, 2022, the holders of the Company’s senior secured convertible notes (the “Notes”) granted a waiver of the share reserve requirements under the Notes and related stock purchase agreement for a period from August 30, 2022 until November 30, 2022 conditioned on the Company pursuing a reverse stock by no later than November 30, 2022, to cure the deficiency.
Item 3.02 Unregistered Sales of Equity Securities.
The disclosure required by this Item and included in Item 1.01 of this Current Report is incorporated herein by reference.
Item 3.03 Material Modifications to Rights of Security Holders.
The disclosure required by this Item and included in Item 1.01 of this Current Report is incorporated herein by reference.
As a result of the entering into an agreement to issue Series A Preferred Stock and Series B Preferred Stock, as described in Item 1.01, pursuant to the terms of our Notes, the conversion price of the Notes was automatically adjusted from $0.3105 to $0.25.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
The disclosure required by this Item and included in Item 1.01 of this Current Report is incorporated herein by reference.
Item 8.01 Other Events
The Company issued a press release announcing the Offering on October 3, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
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Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| Dated: October 3, 2022 | AKERNA CORP. | ||
| By: | /s/ Jessica Billingsley | ||
| Name: | Jessica Billingsley | ||
| Title: | Chief Executive Officer | ||
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| This ‘8-K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 11/30/22 | ||||
| 10/4/22 | ||||
| Filed on / For Period end: | 10/3/22 | |||
| 9/27/22 | ||||
| 8/30/22 | 8-K, DEF 14A, DEFA14A | |||
| List all Filings | ||||
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