Akerna Announces Special Meeting Date to Vote on Merger with Gryphon Digital Mining, Inc.; Effectiveness of Registration Statement on Form S-4 in Connection with Merger
Akerna Corp. (Nasdaq: KERN) has announced a special meeting of stockholders on January 29, 2024, to vote on the proposed merger with Gryphon Digital Mining, Inc. The record date for stockholders entitled to vote is December 21, 2023. Akerna's registration statement on Form S-4 was declared effective by the SEC on January 9, 2024, serving as a proxy statement and prospectus for the Transaction. The declaration of effectiveness by the SEC is a significant step towards the closing of the merger.
The proposed merger between Akerna Corp. and Gryphon Digital Mining, Inc. represents a strategic business decision that can significantly alter the competitive landscape within their respective sectors. From a financial standpoint, the merger can lead to potential synergies that might include cost savings, increased market presence and enhanced shareholder value. However, it is crucial to scrutinize the financial health of both companies, the terms of the deal and the projected growth post-merger to gauge the transaction's success probability.
Investors should assess the valuation metrics used in the merger, such as earnings multiples or net asset values and compare them with industry standards. Additionally, the impact on liquidity and capital structure should be analyzed, as it can affect the companies' ability to raise capital or take on debt in the future. The merger's success will hinge on effective integration and realizing the projected financial and operational benefits.
From a market perspective, the merger between a cannabis compliance software provider and a digital currency mining company is indicative of a trend towards diversification and innovation within technology-driven industries. The integration of blockchain technology into Akerna's compliance software could potentially disrupt the market, offering a unique value proposition. Market response to such mergers is generally contingent on the perceived benefits and the strategic fit between the companies involved.
Moreover, the merger could influence competitive dynamics, prompting responses from other market players. It is essential to monitor post-merger market share shifts and customer reactions, as these will be indicative of the merged entity's performance. Additionally, the potential for cross-industry innovation post-merger should be considered, as it may open up new markets and revenue streams.
The effectiveness of Akerna's registration statement on Form S-4 is a critical legal step in advancing the merger process. This document serves dual purposes as a proxy statement and a prospectus, which is a regulatory requirement to ensure transparency and provide shareholders with essential information. The legal intricacies of such transactions are complex, involving due diligence, compliance with SEC regulations and shareholder approval.
Shareholders' rights and the procedural aspects of the special meeting must be carefully adhered to, as any missteps could result in legal challenges or delays. Furthermore, the legal framework governing the merger, such as antitrust laws and industry-specific regulations, must be navigated to avoid any post-transaction legal disputes. The legal structure of the deal can also have long-term implications for corporate governance and shareholder rights.
01/10/2024 - 08:01 AM
Closing expected around January 31, 2024
DENVER, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Akerna Corp. (Nasdaq: KERN) (“Akerna”) announced that its special meeting of stockholders will be held on Monday, January 29, 2024, at 9:00 a.m., Mountain Time for consideration and voting on the proposed merger (the “Transaction”) between Akerna and Gryphon Digital Mining, Inc. (“Gryphon”), as well as certain other matters relating thereto ("Akerna Special Meeting"). The record date for the determination of stockholders entitled to receive notice of and to vote at the Akerna Special Meeting is the close of business on December 21, 2023.
Akerna’s registration statement on Form S-4 (File No. 333-271857, the “Form S-4”), filed with the U.S. Securities and Exchange Commission (the “SEC”) by Akerna was declared effective by the SEC on January 9, 2024. The Form S-4 was filed in connection with the previously announced Transaction. The Form S-4 serves as both a proxy statement of Akerna (to solicit proxies for the Akerna Special Meeting) and as a prospectus (relating to the Akerna shares to be issued to Gryphon stockholders under the Transaction). Stockholders of both Akerna and Gryphon are encouraged to read the proxy statement/prospectus which contains important information regarding the Transaction. A copy of the Form S-4 is accessible on the SEC's website at www.sec.gov .
“The declaration of effectiveness by the SEC represents a significant step forward towards the closing of our merger with Akerna,” said Rob Chang, Gryphon’s CEO. “With approximately 41% of outstanding Akerna shareholders and about 72% of Gryphon stockholders subject to merger support agreements, we look forward to completing final approvals towards creating an ESG-committed, carbon-neutral bitcoin miner that already has an over two-year track record of top-tier bitcoin efficiency.”
Upon the closing of the Transaction, the common stock of the new “Gryphon Digital Mining, Inc.” is expected to be listed on the Nasdaq under the proposed ticker symbol “GRYP.”
Akerna stockholders who need assistance in completing the proxy card, need additional copies of the proxy materials or have questions regarding the upcoming special meeting may contact Akerna's proxy solicitor, Advantage Proxy, Inc. by calling toll-free at (877) 870-8565 or by email at ksmith@advantageproxy.com.
The closing of the Transaction remains subject to approval by both Akerna and Gryphon stockholders, final approval by the Nasdaq and customary closing conditions. Akerna and Gryphon are targeting to close the Transaction on January 31, 2024
About Gryphon Digital Mining
Gryphon Digital Mining, Inc. is an innovative venture in the bitcoin space dedicated to helping bring digital assets onto the clean energy grid. With a talented leadership team coming from globally recognized brands, Gryphon is assembling thought leaders to improve digital asset network infrastructure. Its Bitcoin mining operation has a net carbon-negative strategy.
About Akerna
Akerna (Nasdaq: KERN) is an emerging technology firm focused on innovative technology.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material with respect to the proposed transactions between Akerna and Gryphon and between Akerna and MJ Acquisition Co. In connection with the proposed transactions, Akerna has filed relevant materials with the United States Securities and Exchange Commission, or the SEC, including a registration statement on Form S-4 that contains a prospectus and a proxy statement. Akerna mailed the proxy statement/prospectus to the Akerna stockholders on January 9, 2024. Investors and securityholders of Akerna and Gryphon are urged to read these materials because they contain important information about Akerna, Gryphon and the proposed transactions. This communication is not a substitute for the Form S-4, definitive proxy statement/prospectus included in the Form S-4 or any other documents that Akerna may file with the SEC or send to securityholders in connection with the proposed transactions. Investors and security holders may obtain free copies of the documents filed with the SEC on Akerna’s website at www.akerna.com, on the SEC’s website at www.sec.gov or by directing a request to Akerna’s Investor Relations at (516) 419-9915.
This communication is not a proxy statement or a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transactions, and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
Each of Akerna, Gryphon, MJ Acquisition Co. and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Akerna in connection with the proposed transactions. Information about the executive officers and directors of Akerna is set forth in the proxy statement/prospectus included in the Form S-4, as last filed with the SEC on January 8, 2024. Other information regarding the interests of such individuals, who may be deemed to be participants in the solicitation of proxies for the stockholders of Akerna, is also set forth in the proxy statement/prospectus included in the Form S-4. You may obtain free copies of these documents as described above.
Cautionary Statements Regarding Forward-Looking Statements
This press release contains forward-looking statements based upon the current expectations of Gryphon and Akerna. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation: (i) the risk that the conditions to the closing of the proposed transactions are not satisfied, including the failure to timely obtain stockholder approval for the transactions, if at all; (ii) uncertainties as to the timing of the consummation of the proposed transactions and the ability of each of Akerna, Gryphon and MJ Acquisition Co. to consummate the proposed merger or asset sale, as applicable; (iii) risks related to Akerna’s ability to manage its operating expenses and its expenses associated with the proposed transactions pending closing; (iv) risks related to the failure or delay in obtaining required approvals from any governmental or quasi-governmental entity necessary to consummate the proposed transactions; (v) the risk that as a result of adjustments to the exchange ratio, Akerna stockholders and Gryphon stockholders could own more or less of the combined company than is currently anticipated; (vi) risks related to the market price of Akerna’s common stock relative to the exchange ratio of outstanding securities of Akerna at closing; (vii) unexpected costs, charges or expenses resulting from either or both of the proposed transactions; (viii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transactions; (ix) risks related to the inability of the combined company to obtain sufficient additional capital to continue to advance its business plan; and (x) risks associated with the possible failure to realize certain anticipated benefits of the proposed transactions, including with respect to future financial and operating results. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties. These and other risks and uncertainties are more fully described under the heading “Risk Factors” in the proxy statement/prospectus included in the Form S-4 and the periodic filings with the SEC, including the factors described in the section titled “Risk Factors” in Akerna’s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, each filed with the SEC, and in other filings that Akerna makes and will make with the SEC in connection with the proposed transactions. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof or as of the dates indicated in the forward-looking statements. Except as required by law, Akerna and Gryphon expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.
When is Akerna's special meeting of stockholders for the proposed merger with Gryphon Digital Mining, Inc.?
The special meeting of stockholders will be held on January 29, 2024.
What is the record date for stockholders entitled to vote at the Akerna Special Meeting?
The record date is December 21, 2023.
What is the status of Akerna's registration statement on Form S-4 with the SEC?
The Form S-4 was declared effective by the SEC on January 9, 2024, serving as a proxy statement and prospectus for the Transaction.
Where can stockholders access the Form S-4 filed with the SEC?
A copy of the Form S-4 is accessible on the SEC's website at www.sec.gov.
