Cannabis software company Akerna (Nasdaq: KERN) said it has signed a deal with Rolling in Green, a pre-roll cannabis automation company that provides a turn-key processing solution for licensed producers. Rolling in Green is a company that uses automation to reduce a processing backlog for Licensed Producers of cannabis in Canada.
The deal comes one day after Akerna said it would acquire Trellis in an all-stock deal valued at $2 million, which sent the stock higher by 11% to close at $7.10.
Trellis is the developer of cannabis inventory management software designed to optimize workflows and ensure regulatory compliance. The company’s inventory management platform provides tools and analytics for cultivators, manufacturers, and distributors in regulated markets.
“Trellis has built a great product that has attracted an impressive list of well-known California operators,” said Jessica Billingsley, CEO, Akerna. “We’re excited to be able to plug Trellis into our compliance bus, leverage our infrastructure, and profitably take Trellis into new markets where Akerna has an established presence. Trellis is an ideal fit for Akerna and delivers immediate accretive value to our shareholders.”
Trellis will funnel clients to Akerna’s enterprise offerings as they grow in size and sophistication. The transaction is expected to contribute a positive cash flow.
“As we looked to raise capital and continue scaling Trellis, I recognized that the environment was quickly changing and that Akerna had an enormous competitive advantage in the marketplace. We made the decision to join a winning team and I’m thrilled that Trellis is now part of Akerna,” said Pranav Sood, founder and CEO, Trellis. “With access to Akerna’s resources, we will be able to provide our clients with additional tools they need to manage their operations, including business intelligence, compliance, reporting, and access to Akerna’s ecosystem of integration partners.”
Rolling in Green
“We selected Akerna’s MJ Platform solution because of its seamless integration with NetSuite,” said Darren Vargo, CEO, Rolling in Green. “As a growing business, we recognize using multiple providers to meet our backend business operations can cause chaos and lead to wasteful business silos. With the MJ Platform we do not have to worry about operational disruptions. We have everything we need in one, easy to use solution.”
For its part, Akerna will use its strategic agreement with NetSuite to help the company manage inventory, track their financials, and maintain customer relationship management (CRM) systems.
“As a company we entered into a strategic agreement with NetSuite, because we understand the importance of an integrated ERP solution to growing enterprise businesses,” said Nina Simosko, Chief Revenue Officer, Akerna. “We are pleased to be working with Rolling In Green and proud that our single, fully integrated solution will enable them to handle everything from inventory and financial management to forecasting. With our MJ Platform, we provide both the depth of cannabis-specific knowledge and technology experience required to enable businesses to maximize ROI and succeed.”
Akerna has tracked $18 billion in cannabis sales across 33 states. The company has statistical relevance at the total U.S. retail level and is the only company with cannabis supply chain analytics able to track consumer demographic insights at the point of sale.