Good news for marijuana stocks comes today in the form of Akerna (NASDAQ: KERN ) debuting on the public market.
Akerna’s debut on the Nasdaq doesn’t come in the typical way. Instead of going through an IPO, the company used a different method. This had two companies merging together to create the new company.
The two companies that are part of this merger were MJ Feeway and MTech Acquisition. With the merger complete, the new company now goes under the name Akerna and is using the KERN stock ticker for its shares.
So how exactly is Akerna connected to marijuana stocks? The company doesn’t actually deal in the drug itself. What it does do is create software that legal retailers of the drug can use. This includes ways to track marijuana seeds from planting to final sale.
While many marijuana stocks are having trouble making it onto the public markets, KERN was able to do so through its unique acquisition. It also helps that it isn’t breaking any laws since it doesn’t deal with marijuana directly, reports MarketWatch .
The split up of KERN stock is between three parties. The first shareholders of MJ Feeway owning 62.7% of the new company. After this its investors of Mtech Acquisition with a 27.7% stake in the company. The final bit of KERN shares belong to a private placement belonging to Mtech.
KERN stock was up 71% as of Wednesday morning.
More From InvestorPlace
- 4 Top American Penny Pot Stocks (Buy Before June 21)
- 7 Value Stocks to Buy for the Second Half
- 7 Hot Stocks to Buy for a Seemingly Sleepy Summer
- 6 Chip Stocks Staring At Big Headwinds in 2019
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post Marijuana Stocks: Akerna (KERN) Stock Soars on Nasdaq Debut appeared first on InvestorPlace .