What Is Going on With Akerna (KERN) Stock Today?

  • Akerna (KERN) rose 30% overnight.
  • The company offers software for the legal cannabis industry.
  • It needs a quorum Sept. 20 to achieve a reverse split of KERN stock.
KERN stock - What Is Going on With Akerna (KERN) Stock Today?

Source: gvictoria / Shutterstock.com

Akerna (NASDAQ:KERN), which provides software for the legal cannabis industry, rose over 30% overnight. Speculators believe it can execute a reverse split of KERN stock.

The stock is threatened with de-listing for failing to trade at $1 per share. The overnight run-up had it opening today at 19 cents with a market capitalization of $13 million.

Akerna tried to have a meeting on Aug. 30, but lacked the quorum to do business. The meeting was then adjourned and rescheduled for Sept. 20. If a quorum is achieved, the company will likely execute a reverse stock split.

What’s Going On?

Akerna is a global technology system for the legal cannabis industry. Its software is designed to comply with relevant laws. It now has eight units with total 2021 sales of more than $20 million. Unfortunately, more money is going out than is coming in. Losses in 2021 came to over $31 million.

The stock came public through a special purpose acquisition company (SPAC) called MTech that was founded in 2017. It hit a high of over $27 per share in 2019, during the height of the legal cannabis craze. It has been falling steadily since early 2021, when it was trading at $8. The high for 2022, achieved at the start of the year, was $1.81 per share. The average price target among two analysts is currently 15 cents.

Management sought to halt the slide with a corporate restructuring in May. This included a $690,000 hit to second quarter earnings to deal with 59 job cuts.

After the restructuring, the company had another stock offering, raising $10 million at 23 cents per share. The company is due to report third-quarter earnings on Nov. 6, with analysts expecting a loss of 6 cents per share, or about $5 million.

The stock has been actively traded lately. There are just 80.3 million shares outstanding, but about 25 million shares traded on Sept. 13.

What Happens Next for KERN Stock?

If Akerna can’t get a quorum for its Sept. 20 meeting, it may be delisted. If it does get a quorum, expect a reverse stock split. Speculators are betting it can make income meet outgo in the current quarter, or that it can find a buyer. But that’s all they’re doing: speculating.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.

Article printed from InvestorPlace Media, https://investorplace.com/2022/09/what-is-going-on-with-akerna-kern-stock-today/.

©2023 InvestorPlace Media, LLC