Toronto-based cannabis software startup Ample Organics has officially been acquired by Akerna. The deal was valued at $46 million and closed July 8, approximately six months after the companies entered a definitive agreement on the acquisition.
Following the deal, Ample Organics’ current team, leadership, and Toronto-based office will remain unchanged.
The acquisition consisted of $7.5 million CAD in cash and 3.3 million shares in Akerna. John Prentice, founder and CEO of Ample Organics will remain with the company as president, as the startup joins “the Akerna family of companies.” Ample Organics told BetaKit its products will continue to be available, and its team, leadership, and office in Toronto will remain unchanged. The company also plans to continue to operate and invest in Canada.
“Today marks a significant milestone for Ample Organics,” said Prentice. “We are thrilled to be joining forces with Akerna to create the only true provider of technology solutions for the cannabis sector across North America.”
Since 2014, Ample Organics has operated what it calls a “seed-to-sale platform,” which offers tracking, reporting, and compliance tools to cannabis cultivators, processors, sellers and clinics. Some of its other products include a platform that allows licence holders to accept cannabis patients from approved clinics electronically, as well as a digital wholesale marketplace for cannabis brands and regulators.
Last year, Ample was selected to deliver a national cannabis tracking platform in St. Vincent and The Grenadines. That same year, the company laid off approximately 16 percent of its staff, citing challenges in the Canadian cannabis industry that the company said impacted its growth.
RELATED: Ample Organics makes layoffs as capital dries up in Canadian cannabis industry
Based in Denver, Colorado, Akerna is a regulatory compliance software company serving the cannabis industry. The company claims to have tracked billions of dollars in cannabis sales since launching in 2010.
“After working closely with John and the team at Ample over the last six months finalizing our integration and go to market strategies, I could not be more confident in the merits of the transaction and associated synergies,” said Jessica Billingsley, CEO of Akerna.
On an investor call that took place in December regarding the acquisition, it was stated that an additional $6.7 million may be paid as part of the deal if certain revenue targets were achieved by Ample in the calendar year 2020. On the same call, it was shared that the cash component of the acquisition is being used by Ample Organics to “retire its debt obligations.” Akerna recently confirmed to BetaKit that the company stands by what was said on the investor call.
Image courtesy Ample Organics via Twitter.