Akerna closes $17 million acquisition of 365 Cannabis, built on Microsoft's Dynamics 365 Business Central, offering cannabis operators the most comprehensive ERP system
The acquisition combines Akerna's compliance gateway and feature-rich reporting with 365 Cannabis' Microsoft ERP solution to create the cannabis sector's most complete portfolio of tax, financials, operations, reporting, and compliance systems, crucial to scale as the industry grows and matures.

DENVER, Oct. 4, 2021 /PRNewswire/ -- Akerna (Nasdaq: KERN), a leading enterprise software company and the developer of the most comprehensive technology infrastructure, ecosystem, and compliance gateway powering the global cannabis industry, announced it has closed the acquisition of 365 Cannabis, a cannabis ERP and business management software system built on Microsoft's Dynamics 365 Business Central, in a $17 million deal.

The combined complementary key capabilities of Akerna and 365 Cannabis will:

  • Add the most robust cannabis-compliant Microsoft ERP on the market, establishing Akerna as the broadest portfolio of technology solutions provider for cannabis operators with a majority of the mainstream mid-market to enterprise finance, inventory, and operations solutions
  • Offer cannabis operators a seamless solution from startup to multi-state operator while maintaining regulatory compliance every step of the way through Akerna's compliance gateway
  • Give 365 Cannabis' 85+ customers, including Pharmacann, Nectar, Revolution, Sundial, and Kiaro, access to Akerna's compliance gateway, feature-rich reporting, MJ Retail POS, and the recently launched Akerna Connect.

An updated investor deck on the transaction is available at: ir.akerna.com.

"The 365 Cannabis acquisition represents the final piece of the puzzle for connecting cannabis compliance with mainstream ERP offerings to give our clients a choice between all of the most popular financial and operational systems," said Jessica Billingsley, Akerna CEO. "We are proud to offer cannabis operators the most comprehensive cannabis technology ecosystem of the best-in-class tax, financial, compliance, consulting, training, data analytics, product development, and more."

As the cannabis industry experiences continued growth and the possibility of US federal reform increases, cannabis operators are seeking to grow their operations and expand into new markets. To reach those growth goals while meeting multistate compliance, cannabis operators require a comprehensive ERP system, like Akerna's, that can scale with them.

Akerna has partnered with SAP, Sage Intacct, and other leading financial and tax planning providers to offer cannabis operators a solution for each stage of their evolution – from startup to multistate operator (MSO) – while maintaining regulatory compliance through Akerna's compliance gateway. The acquisition of 365 Cannabis accelerates the deployment of this strategy with the addition of Microsoft capabilities, further establishing Akerna as the most robust cannabis-compliant ERP system offering a complete portfolio of mainstream tax and financials. 

"We're thrilled for this acquisition to be finalized and to officially be a part of the Akerna family of brands. Akerna's clients have a true path to scalability while remaining in the Akerna ecosystem. 365 Cannabis' clients will receive access to a more robust platform, a large pool of integrations and complementary products, and a broader support team. Overall, this acquisition provides unparalleled opportunities for growth to service current and future clients, expansion into new markets, and supports client retention through product, service, and reach," said Jeff Kiehn, 365 Cannabis Chief Executive Officer.

About Akerna
Akerna (Nasdaq: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industries. Based in Denver, Colorado, the Company's mission is to create the world's most transparent and accountable supply chain by building a cannabis technology ecosystem connecting data points across the global cannabis supply chain from seed to sale to self. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and was the first cannabis software company listed on Nasdaq.

Using connected data and information to propel the cannabis industry forward, Akerna empowers businesses, governments, patients, and consumers to make smart decisions. The Company's cornerstone technology, MJ Platform, the world's leading infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators. Akerna also offers a complete suite of professional consulting services and data analytics for businesses as well as solo sciences, MJ Freeway, Leaf Data Systems, Trellis, Ample Organics, Viridian Sciences.

About 365 Cannabis
365 Cannabis is a comprehensive vertically integrated cannabis software solution built on the Microsoft Dynamics platform. The company is a Microsoft Gold Partner and its ERP (Enterprise Resource Planning) solution incorporates Cultivation, Production, Global Compliance, QC, Finance, Dispensing & Retail, CRM, Warehousing, Distribution, Multi-Facility, Multi-Company, Multi-Entity, Language, Currency and more. The Company services a client base comprised of leading U.S.-based MSOs and single-state operators, and Canadian LPs, in addition to global cannabis clients outside North America. Learn more at www.365cannabis.com or call 888-609-6766.

Forward-Looking Statements
Certain statements made in this release and any accompanying statements by management are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding  the ability of Akerna to integrate 365 Cannabis and the potential benefits to Akerna and its customers, the impact of the acquisition for 365 Cannabis' customers, Akerna's future business plans, Akerna's potential business strengths in the market and any other statements expressing the views of Akerna's management on future business results or strategy. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes (including, without limitation, the results of Akerna's contracts, strategic initiatives, and business plans as described herein) to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna's ability to recognize the anticipated benefits of being a public company, (ii) competition, (iii) Akerna's ability to grow and manage growth profitably, (iv) Akerna's ability to maintain relationships with customers and suppliers and retain its management and key employees, (v) costs related to being a public company, (vi) changes in applicable laws or regulations, (vii) Akerna's ability to identify, complete and integrate acquisitions, including 365 Cannabis, and achieve expected synergies and operating efficiencies in connection with acquired businesses, (viii) and other risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under "Risk Factors" therein. Actual results, performance, or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those vary from forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial and other information, are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond Akerna's control. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna's industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities of the Company nor shall there be any sell of securities of the Company in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities to be issued in connection with the transactions described in this press release have not been and will not be registered under the Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold absent such registration or an available exemption therefrom.

 

SOURCE Akerna

For further information: Georgia Jablon, Pr@akerna.com

Jessica Billingsley

Akerna

Jessica Billingsley serves as Akerna’s Chief Executive Officer. In June 2019 she became the first CEO of a cannabis ancillary company to be listed on Nasdaq. She co-founded MJ Freeway in 2010, where she served as President until April 2018, and later as the CEO until MJ Freeway was acquired by MTech to form Akerna. In 2015, she was named as one of Fortune’s Most Promising Female Entrepreneurs, in 2018, she was named one of Inc. Magazine’s 100 Female Founders, and in 2019, she was named to Entrepreneur’s inaugural list of 100 Powerful Women.

Prior to MJ Freeway, Jessica earned her degree in Communications and Computer Science from the University of Georgia and later became CEO and founder of Zoco, a technology services firm with clients across the United States. With 20 years of technology and systems experience in rapidly scaling businesses, Jessica is a highly regarded executive in both the tech and cannabis space.

Ray Thompson

Chief Operating Officer

Ray Thompson is the Chief Operations Officer at MJ Freeway. He has 15+ years of corporate management experience including operations, sales, and talent management. From 2008 to 2016, Ray served as the Senior Vice President of VisionLink, a multiagency humanitarian software platform. From 2016-2018, Ray was Head of Customer and Sales Operations at Gloo, a people development platform. With 20+ experience in software systems, Ray specializes in the meeting the unique needs of high growth technology companies and helping them scale.

Ruth Ann Kraemer

Chief Financial Officer

Ruth Ann leads MJF’s financial operations. From 2012 to 2018, she served as CFO of Tempo Financial Holdings, Tempo Financial US Corp, and Unidos Financial Services, subsidiaries of Catalina Acquisitions. From 2010 to 2012, she worked for Linc Energy Operations as Divisional CFO. Prior to that, Ruth Ann was CFO for Allegro Multimedia, and has held various financial roles throughout her career. She was certified as a CPA in 1985.

Mark D. Iwanowski

Global Visions-SV, Inc.

Mark D. Iwanowski is the Founder, CEO and President of Global Visions-SV, Inc. He was previously a Managing Director with Trident Capital, Cleantech and served as Senior Vice Presential Global IT and CIO for Oracle Corporation. Mark also held executive positions with Raytheon and was principal at three successful startups—Applied Remote Technology, Quantum Magnetics, and Neohapsis. He earned his MBA from National University and California Institute of Technology, and B.S. in Engineering from the University of Pennsylvania.

Emery Huang

Batu Capital

Emery Huang is senior partner at Batu Capital, which is a multi-family office managed by Emery and Evan Huang. Batu looks for opportunities in cryptocurrency, cannabis, and big data that constitute either game-changing technologies or are late-stage/pre-IPO enterprises that have built wide economic moats. Prior to Batu, Emery was senior partner at Titan Capital.

Matt Kane

Green Shades Software

Matt Kane is the Co-Founder, Board Member, and former Co-CEO from 2005-2019 of Greenshades Software. He is also a Co-Founder and Board Member of Welltality, where he served as CEO from 2014-2018. Matt’s background is in building, growing and scaling software companies. He has been a member of the MJ Freeway Board of Directors since 2015 and earned his MBA from Warrington College of Business at University of Florida and B.S. in Computer Information Systems from Jacksonville University.

Roger McNamee

Elevation Partners

Roger McNamee co-founded Elevation, an investment partnership focused on the intersection of media and entertainment content and consumer technology. In 1999, he co-founded Silver Lake Partners, the first private equity fund focused on technology businesses. He notably was a key early investor in Facebook, and he released his insights on the social media site in a new book called “Zucked: Waking Up to the Facebook Catastrophe,” published by Penguin Random House.

Tahira Rehmatullah

MTech

Tahira Rehmatullah is President of T3 Ventures, Partner of Big Tent Ventures, and member of the board of directors for Akerna Corp. Tahira has previously held positions at Hypur Ventures, MTech Acquisition Corp., Marley Natural, Privateer Holdings, City First Enterprises, Perry Capital, and Ernst & Young. She is an investor and advisor to numerous cannabis businesses and entrepreneurs, including the advisory board of The Initiative and the Last Prisoner Project, and is dedicated to developing female and minority leadership in the industry. Tahira earned her MBA from the Yale School of Management and BS. in Finance from The Ohio State University. She resides in New York City.

Alex Shah

solo*sciences

Ashesh “Alex” Shah is the founder and CEO of solo*sciences, a leading anti-counterfeiting and supply chain validation company. Mr. Shah founded The London Fund in 2002 and continues to serve on its investment committee. In June 2018, Mr. Shah was appointed Special Advisor to the CEO of Eaze Technologies, Inc., a position which he continues to serve. Mr. Shah is also currently on the board of directors of RevolutionWear, Inc. and EdCast. Mr. Shah’s has 28 years of experience building, integrating, and leading technology-focused companies from concept to an initial public offering and has led successful exits across a range of sectors including: loyalty; category management; data analytics; high-performance computing; payment processing; human resources technology; consumer packaged goods; artificial intelligence and fashion. Mr. Shah holds a Bachelor’s degree in Political Economy from Williams College.

Scott Sozio

Akerna

Scott Sozio serves as Head of Corporate Development for Akerna. He was the CEO of MTech Acquisition Corp., a Nasdaq-listed special purpose acquisition company that merged with MJ Freeway to create Akerna. He is the Co-Founder and Managing Director of Hypur Ventures, a cannabis-focused venture fund and a Partner at Van Dyke Holdings, a family office investment firm. Scott is Director of Hypur Inc., a banking compliance technology business, and Director of Simplifya Holdings, LLC, a cannabis compliance technology business. He received his B.A. in Architecture from Columbia University.