MJ Freeway Archives - Green Market Report

StaffStaffJuly 12, 2019
jessica-billingsley-headshot-1280x1658.jpg

8min15452

Jessica Billingsley is a technology pioneer, solutions creator and industry leader, providing proven compliance software solutions to the cannabis market. She is the Chief Executive Officer of Akerna—the first cannabis compliance technology company to be traded on Nasdaq—making her the first CEO from this market space to bring a company to a major U.S. exchange. Jessica is also the CEO of Akerna’s flagship subsidiary—MJ Freeway. She established MJ Freeway in 2010 and it is the leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform. Akerna also offers Leaf Data Systems as a government resource for public sector compliance. Combined entities tracked more than $15 billion in world-wide, client cannabis sales to date. She is the first woman ever from the cannabis industry to receive the prestigious Fortune’s “Most Promising Women Entrepreneur Award” and is also recognized as one of Inc.’s “Female Founders 100.” Jessica received a degree in Communications and Computer Science from the University of Georgia and lives with her daughter in Denver.

GMR Executive Spotlight Q&A – 

Full birth name: Jessica Billingsley 

Title: Chief Executive Officer, Akerna and Chief Executive Officer, MJ Freeway

Company: Akerna and MJ Freeway

Years at current company:  Akerna launched in June 2019. Nine and a half years at MJ Freeway.

Education profile:  At 16 years old, I received a full academic scholarship to attend the University of Georgia, where I received a degree in Communications and Computer Science.

Most successful professional accomplishment before cannabis:  Prior to forming MJ Freeway, I built and managed technology operations with an emphasis on executive management, corporate culture, finance, and strategic relations. I launched my first company at 22, and I’ve been a successful founder, owner, COO and CEO of several companies.

Company Mission: Our technology empowers a compliant cannabis industry to prove outcomes that positively change lives every day.

Company’s most successful achievement: Nine years ago, my co-founder and I invented seed-to-sale tracking upon identifying the need for organic material tracking and compliance SaaS solutions in the growing cannabis industry. We were supporting one of the first cannabis dispensaries and grows in Colorado, and saw that cannabis needed technology built for it not adapted from other industries. And we believed visibility across the entire supply chain from seed-to-sale would be a requirement for the industry’s sustained growth. MJ Freeway was born with the launch of our patent-pending cannabis seed-to-sale technology. Today, seed-to-sale tracking is a requirement of most state’s that regulate legal cannabis. And to date MJ Freeway has tracked more than $13B in legal cannabis sales.

In 2017, in response to what I saw as the maturing of the cannabis market to multi-state enterprise businesses, MJ Freeway launched the cannabis industry’s first ERP. We also led the international expansion in the cannabis technology sector very early on in 2012 in Canada then into Spain. Today, our total international footprint spans 13 countries. Innovation and seeing what opportunities are next on the horizon – and then being ready for them first – is a hallmark of MJ Freeway and now Akerna. 

Most recently, I’m proud of an accomplishment that is a testament to the entire MJ Freeway team. Via a merger between MJ Freeway and MTech, a shell company formed for the purpose of acquiring a cannabis technology company, Akerna is the first software company that serves cannabis businesses to be traded on a major U.S. exchange. Akerna is traded on the Nasdaq under the ticker symbol: KERN. It’s an unprecedented milestone signifying a shift in beliefs and generating ripples of opportunity.  

Finally, I’m proud to have broken a couple of glass ceilings by serving as CEO of a technology company and holding a CEO position in a publicly traded company. Unfortunately, both are very rare occurrences. MJ Freeway launched last year the One Woman Challenge campaign to empower women in their careers. I want to reverse the growing decline of women in tech. It’s appalling to learn there’s a smaller percentage of women working in tech today than 25 years ago. Please learn more about the #OneWomanChallenge on our website and social pages and get involved. 

Has the company raised any capital (yes or no): Yes

If so, how much?: $25M in private financing prior to this most recent public transaction.

Any plans on raising capital in the future? Yes. Akerna’s strategy is to consolidate cannabis technology companies to connect data points in the global cannabis supply chain. Raising capital is a piece of our strategy to fully execute on Akerna’s strategy and is a reason for our listing on Nasdaq to be able to access more cost effective capital.

Most important company 5-year goal: To build the world’s most transparent and accountable consumer packaged goods supply chain. There’s an explosion of growth in consumers’ desire for transparency in products, which starts with transparency in the supply chain. With MJ Platform’s technology, I can tell you what farm the cannabis in your gummy was harvested from, what date it was harvested, and what nutrients were added prior to harvest. We can then follow the progression of the exact cannabis in that gummy until the moment it was sold to you. Seed-to-sale technology gives an unprecedented level of transparency across the supply chain. We intend to build on MJ Platform and grow Akerna through acquisitions to connect more data points across the cannabis supply chain and empower businesses, governments, and the public with the information they need to make better decisions. We are excited about the explosive growth of this industry and how compliance technology will underpin it. 


home_banner.jpg

5min27562

Today MTech Acquisition Corp. and MJ Freeway LLC announced the completion of their merger to form the Akerna Corp. MTech Acquisition Corp. (NASDAQ: MTEC), the first US-listed Special Purpose Acquisition Company (SPAC) focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway, a leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform, has now become the first compliance technology company in the cannabis space to be traded on Nasdaq. Jessica Billingsley also becomes the first female CEO from the cannabis industry to lead a company that will trade on the exchange.

“As legalization of cannabis expands across the world, we believe it is imperative that businesses, patients, consumers, and governments have the tracking and compliance technology they need to make informed decisions and comply with applicable regulations. We believe Akerna is well suited to meet these needs with the ability to scale rapidly across the world and offer a robust and innovative platform for growing industry demands,” stated MJ Freeway Co-Founder & Chief Executive Officer Jessica Billingsley.

In addition to her role as CEO, Billingsley also serves on the Akerna Board of Directors and is joined by senior leadership from MTech: Scott Sozio, Tahira Rehmatullah and Douglas Rothschild. The Board of Directors of Akerna also includes Emery Huang, Matt Kane, and Mark D. Iwanowski, who were formerly members of MJ Freeway’s Board of Directors. Roger McNamee, who served as senior advisor to MJ Freeway’s Board of Directors, will act as Senior Advisor to the Board of Directors of Akerna.

The business combination between the two companies was approved at a meeting of MTech stockholders today. In connection with the transaction, MTech and MJ Freeway combined to form Akerna Corp. (“Akerna”). The shares of common stock and warrants of Akerna will begin trading on The Nasdaq Stock Market tomorrow, June 18, 2019, under the symbols “KERN” and “KERNW,” respectively. The company also announced raising $9.2 million prior to this closing.

“We are very pleased to close this transaction and look forward to capitalizing on the substantial operating and financial benefits we believe the combination will create. From here, we believe we are well positioned to pursue our acquisition strategy to drive transformation for future growth in the regulatory technology sector,” commented Scott Sozio, CEO of MTech. “We believe comprehensive, compliant, scalable technology solutions will underpin the industry’s rapid growth, and serve as a backbone for sustained success.”

Roger McNamee, Senior Advisor to the Akerna Board of Directors added, “Cannabis companies that want to be leaders are adopting MJ Platform, because it is the only ERP product with the technical foundation to support multi-line and multi-location operations. This transaction will enable MJ to better support customers manage high growth and complexity as the industry transitions from local to a global scale.”

Upon the closing of the transaction, the former MJ Freeway equity holders exchanged their securities of MJ Freeway for securities of Akerna, and the former equity holders of MTech exchanged their securities of MTech for securities of Akerna. As a result of the former MJ Freeway equity holders beneficially own approximately 62.7% of Akerna’s outstanding shares of common stock (including the shares held in escrow and unvested restricted shares); the former MTech stockholders beneficially own approximately 27.7% of Akerna’s outstanding common stock; and the investors in MTech’s previously-announced private placement that closed concurrently with the business combination beneficially own approximately 9.6% of Akerna’s outstanding shares of common stock. Legal counsel for the business combination was provided by Graubard Miller (MJ Freeway) and Ellenoff Grossman & Schole LLP (MTech).

 


William SumnerWilliam SumnerJune 13, 2019
shutterstock_490655284.jpg

5min9130

Although adult-use cannabis is legal in nine U.S. states, problems persist with companies trying to gain access to capital and essential financial services. Consequently, the industry has devised a series of methods and institutions to circumvent these difficulties; from credit unions to keeping their funds in a giant safe. Another unique way that the cannabis industry has adapted to the issue has been connecting companies with private capital investment through investor forums. A perfect example of this is the MJMicro Conference planned for June 25, 2019, in New York City.

MJMicro is an invitational investor forum aimed at connecting high net worth investors with C-level executives of cannabis companies that have proof of concept, revenue streams, audited financials, and valuations justified by public markets.

The conference is hosted by MjLink.com Inc., a wholly-owned subsidiary of Social Life Networks, Inc. (OTC: WDLF).  George Jage is President of MjLink.com, which is an A.I. and Blockchain powered cannabis social network technology company that launched one of the first cannabis social network platforms in the United States and Canada, back in early 2013.

In addition to a fireside chat with two of the leading cannabis companies in the industry, Canopy Growth (NYSE: CGC) and Acreage Holdings (OTCMKTS: ACRGF), several companies have been selected to host spotlight presentations during the conference. Those companies include Emerald Health Therapeutics (CVE: EMH), FSD Pharma (OTCMKTS: FSDDF), and Helix TCS (OTCMKTS: HLIX).

Emerald Health Therapeutics is a medical cannabis company licensed to operate in Canada. The company’s subsidiary, Emerald, both produces and sells medical cannabis and has a stake in a company that produces, cultivates and distributes wholesale cannabis and cannabis extracts for both adult-use and medicinal purposes.

Most recently, Emerald Health was appointed by the American Trade Association for Cannabis and Hemp (ATACH) to lead its International Affairs Council on CBD and Hemp in ATACH’s engagement with the US Food & Drug Administration’s public hearing on CBD regulations.

Acting as a subsidiary of FV Pharma Inc., FSD Pharma focuses on developing high quality indoor-grown medical cannabis and the development of novel cannabinoid-based treatments for several central nervous system disorders. The company is currently engaged in expanding its 25,000 square foot cultivation facility in Ontario.

Helix TCS provides infrastructure services for the cannabis industry. Though the company may not be a household name, several of its subsidiaries are more recognizable; including Helix Security, Cannabase, and the seed-to-sale tracking software company BioTrackTHC. Tracking over $18 billion in legal cannabis sales, Helix TCS’s products are used in six countries, 36 U.S. states, and over 2,000 licensed retail locations.

In addition to the spotlight presentations by Emerald Health, FSD Pharma, and Helix TCS; several notable cannabis companies are also set to present at MJMicro. Those companies include MJ Freeway, Dixie Brands., Vireo Health, and more.

Jage was the lead executive and driving force behind the development of Marijuana Business Daily and the success of MJBizCon from 2014 through 2017 and most recently he took the helm at Dope Media and successfully negotiated the acquisition by the High Times Holding Corp. His events have been recognized by Tradeshow Week (2006, 2008, 2009) and Tradeshow Executive (2016, 2017) as one of the fastest growing events in the U.S.  He has been awarded UNLV’s Jerry Valen Award of Distinction (2010) and the Nevada Entrepreneur Award (2008), and named as the Trade Show Elite (2013) and Gourmet News’s Top 20 Under 40 (2006).

Green Market Report is a media partner of this event.


William SumnerWilliam SumnerJune 12, 2019
daily_hit004-1280x533.png

6min4900

It’s time for your Daily Hit of cannabis financial news for June 12, 2019.

On the Site

Oregon House Passes Cannabis “Export” Bill

In a bi-partisan vote of 42-17 on Tuesday, the Oregon House passed a historic measure that will allow Oregon’s Governor to enter into agreements with other consenting states to allow for the legal export of cannabis between state markets.  Governor Brown is expected to sign the bill.

MJ Freeway

Seed-to-sale cannabis software company MJ Freeway and MTech Acquisition Corp. (NASDAQ: MTEC) agreed to issue and sell an additional 215,475 shares of Class A common stock at $10.21 per share as part of its previously announced private placement in a deal valued at $2.2 million. The company is expected to go public within months.

Coda Signature

Luxury cannabis brand Coda Signature California closed on a $24.4 million round of Series A funding. Altum Investments is the parent company of The Grow Foundry California, which goes by the name of Coda. The company said that the funds will be used to accelerate expansion into emerging North American markets for Coda Signature-branded premium cannabis-infused edibles, topicals and concentrates. In addition to that, the money will also be used for strategic additions to the management team.

In Other News

Willow Industries

Willow Industries announced that it has raised $2 million in venture funding. The fund raise was co-led by AFI Capital Partners and Welcan Capital and were joined by Halley Venture Partners and Flatiron Venture Partners. Willow Industries is a technology company that specializes in hemp and cannabis decontamination without compromising the integrity of the flower. “The support we received in this financing round from our investors substantiates the value that Willow provides to cannabis cultivators around the country,” said Jill Ellsworth, Willow’s Founder and CEO. “This investment allows us to maintain our position as the leader in what we’re passionate about: consumer safety and helping cultivators across the country sell high-quality, clean, safe cannabis.”

Neptune Wellness Solutions

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced the release of its financial results for the quarter and fiscal year ending on March 31, 2019. Year-over-year evenue for the quarter declined from $7 million to $5.8 million. Net loss for the quarter increased from a loss of $4.8 million to a net loss of $12.4 million. The net loss for the fiscal year was $23.2 million, down considerably from a net income of $20 million in the previous year. Despite the loss, management remains positive in the company’s outlook for the coming fiscal year. “With the largest extraction facility in Canada, with a licence, and a transaction pending for a second facility in the United States, multiple supply partnerships now in hand, and solid and growing relationships with new clients, we are on our way to realizing our objective to become the global leader in cannabis extraction,” said Jim Hamilton, CEO of Neptune.

MediaJel

The cannabis advertising and marketing firm MediaJel announced that it has acquired Potnt Agency, a hemp and cannabis-focused public relations agency. Under the agreement, Potnt CEO Jennifer Price will stay on as MediaJel’s Vice President of Communications. “Public relations is one of the most relevant communications disciplines for the feverishly evolving cannabis industry. The old narrative needs to be changed. Today’s market is fully different, and successful communications embracing this market is, to say the least, quite complicated at the local level,” said Thomas Harrison, Chairman of the Board, MediaJel.

 


Debra BorchardtDebra BorchardtJune 12, 2019
MJFreeway2.jpg

4min6990

Seed-to-sale cannabis software company MJ Freeway and MTech Acquisition Corp. (NASDAQ: MTEC) agreed to issue and sell an additional 215,475 shares of Class A common stock at $10.21 per share as part of its previously announced private placement in a deal valued at $2.2 million. The company is expected to go public within months.

According to the company statement, MTech will issue and sell an aggregate of 901,074 shares of Class A common stock for aggregate gross proceeds of approximately $9.2 million. The company said it does not expect to issue any additional shares in the private placement. The closing of the private placement is conditioned on the closing of the business combination immediately thereafter.

MTech and MJ Freeway had previously announced that they will combine and rename the company Akerna Corp. The shares of Class A Common Stock issued in the private placement will convert into shares of Pubco common stock on a one-for-one basis upon the closing.

“As an existing MJ Freeway investor, making this investment in Akerna was an easy choice considering the trend of global legalization we are seeing, especially in Asian markets. We believe Akerna is well-positioned to capitalize on this growth through their robust ERP offerings and tracking & compliance technology,” stated MJ Freeway Board Member and Khitan’s Emery Huang. “Further, we believe the value proposition with the pending merger and Nasdaq listing enhances Akerna’s financial position and opens the door to acquisition opportunities, which should drive further shareholder value.”

Cresco Capital Partners II, LLC (CCP II), an existing investor in MJ Freeway, joins previously reported Khitan Capital, LLC (Khitan) and The London Fund in the private placement. Matt Hawkins, Managing Principal at CCP II, currently invested in MJ Freeway, said, “We have high confidence in the growth of the technology sector in cannabis, the strategic direction of Akerna, and the leadership at MJ Freeway. This additional stake in Akerna reflects that confidence.”

“The significant investments of financing, expertise, and confidence from our private placement participants will be invaluable as we move into this monumental new chapter. I look forward to expanding our relationships with Mr. Huang and Mr. Shah, leveraging additional global market and tech insights for strategic growth, and I thank Mr. Hawkins for his continued support,” stated Jessica Billingsley, Co-Founder and Chief Executive Officer of MJ Freeway.

Scott Sozio, CEO of MTech, commented, “MJ Freeway has an established history of delivering technological innovation to the cannabis industry. Securing this investment provides additional capital to grow our proprietary ERP platform and further establish Akerna as a dominant force in cannabis technology.”


William SumnerWilliam SumnerApril 26, 2019
420-2-1280x893.jpg

5min13630

The smoke has cleared, and the numbers are in. This year’s 4/20 holiday was the most profitable in the history of legal cannabis, according to data provided by cannabis technology and data firm MJ Freeway.

Between April 18 and April 20, cannabis sales topped out at $182 million, up 38% from last year’s $132 million. On 4/20 alone, sales reached as high as $80 million, easily making it the largest grossing sales day of the year so far.

By far the most popular cannabis product purchased over the weekend was flower, which accounted for 45.3% of sales. However, flower sales on the whole only increased by 2%. The top three flower strains sold over the holiday weekend were Blue Dream, Grapefruit Durban, and Sour Diesel. The second most popular cannabis product sold was vaporizer cartridges and pens with 39% of sales. Concentrates took the third spot with 12% and edibles rounded out the bottom, accounting for only 10% of sales.

Nationwide, the average order was around $108.06, representing an increase of $10 per order when compared to last year’s sales figures. The average order size grew by 30% when compared to the previous year, rising to 3.56 products per order. The number of discounts compared to last year also grew, roughly doubling in number.

This year’s 4/20 holiday saw little change in the way of gender dynamics but there was a shift in age demographics. Men made up the majority of 4/20 purchases, with 62% of sales coming from men and 38% coming from women.

Adults aged between 30-40 years old made up the largest purchaser group, following by those under the age of 30. In 2018, adults aged between 50-60 years old made up the largest group, followed by those between the ages of 40-50 years old.

One of the reasons why sales were particularly high this year was that it coincided with two major religious holidays, Passover and Easter, as well as the weekend. With more free time, individuals were better able to plan their 4/20 purchases and, as the numbers show, acted accordingly.

Flowhub

We just got in new data from Flowhub with some info on what happened. So, how high did cannabis sales soar on 4/20/2019?

    • Compared to 4/20/2018, this year’s sales increased by 7% with 9% growth in both check-ins and transactions.
    • Compared to an average Saturday, 4/20/2019 saw over 50% increase in sales, transactions, and check-ins with an average (post-tax) sale amount of $65.30—7% higher than average.
    • It wasn’t just a high day, it was a high weekend! Compared to 420 weekends in 2018, sales and transactions grew 22% with a 20% increase in check-ins from 4/19-4/21/2019.
    • Flower sales dominated 420, accounting for 54.1% of total sales. Over the weekend, nearly 150k pre-rolls were sold!
    • The 2nd top selling product category was concentrates at 30.8%, followed by Edibles at 11.3%.
    • Keeping calm and staying compliant. While 98% of ID cards scanned were successfully checked in, Flowhub Check-In App flagged 690 underage customers, 427 expired, and 519 suspicious IDs throughout the 420 weekend.

Compared to 2018, 4/20/2019 had an increase in overall sales, check-ins, and transactions, but a small decrease in the average sale amount.

 


William SumnerWilliam SumnerNovember 27, 2018
46492734_267441153958322_3724456185798066176_n.jpg

6min12870

During the massive gathering of cannabis industry leaders at Marijuana Business Conference & Expo in Las Vegas, Nevada, the leading women came together to honor the achievements of their peers. The 2nd Annual Industry Power Women Awards, the ceremony aimed to recognize the accomplishments of women in the cannabis industry; from entrepreneurs and investors to influencers and advocates, commenced.

The award ceremony was hosted by the group Industry Power Women (IPW) and made possible with generous sponsors that included Dr. Robb Farms, High Times Holding Company, Organa Brands, Regs Technology (Cannaregs), Skunk Factory, Mood33, Passport Cannabis, The GoldQ, CH3 Ventures, Greenhouse Ventures, Saka Wines and Pink Haze.

IPW was founded in 2017 and is an organization established to help advance female businesswomen in cannabis. IPW aims to elevate and empower female entrepreneurship within the cannabis industry by creating a support network of like-minded individuals.

Attending the invite-only ceremony was an assortment of women from across the industry and all walks of life. These women include founders, CEOs, C-suite executives, trade organization leaders and community organizers.

Green Market Report co-founder and CEO, Debra Borchardt, and managing partner of KCSA Strategic Communications as well as the founder of AxisWire, Cynthia Salarizadeh acted as hostesses for the event. The first to take home an award was Kristin Hope for the Rising Star Award. At just 15 years old, Hope became the first person to launch a pharmaceutical grade hemp beauty line, HOOP, and was most recently nominated for the Bell scholarship.

The next award recipient was Gaynell Rogers, who won Influencer of the Year. As one of the most respected voices in public relations, Rogers has worked with some of the best and brightest in the cannabis industry; including Harborside Health’s Co-Founder Steve DeAngelo.

Outside of the cannabis industry, Rogers is also known for her work as the senior publicist for Lucasfilm and the Head of Feature Film Publicity at Pixar for the first “Incredibles” and “Cars.”

For her outstanding work as a cannabis advocate, Amy T. Margolis was granted the 2018 Leadership Award. Margolis is the founder of the Oregon Cannabis Association, which is one of the largest trade organizations in the cannabis industry.

Most recently, Margolis was also named by Cannabis Business Executive (CBE) as one of the 2017’s 100 Most Powerful Political People in Cannabis and one of the 50 Most Important Women in Cannabis in both 2016 and 2017.

Taking the prize for Advocate of the Year was Wanda James. As an outspoken political voice and serial entrepreneur, James has been honored by High Times Magazine as one of the 100 Most Influential People in Cannabis and was also named as one of the 50 Most Important Women in the Cannabis Industry by CBE.

Emily Paxhia, co-founder and Managing Partner of Poseidon Asset Management, was named IPW’s Investor of the Year. Throughout her career, Paxhia has reviewed thousands of cannabis companies and has always taken the time to uplift promising female entrepreneurs by helping them shape their pitch preparations, go-to-market strategies/ product launches, and advised on day-to-day business operations.

Taking the Industry Power Women top honor of 2018 Business Woman of the Year was Jessica Billingsley. Billingsley is the Co-Founder and CEO of MJ Freeway Business Solutions; a technology company that provides software solutions to cannabis firms, as well as small-business, consulting services and application license support. In addition to her entrepreneurial accomplishments, Billingsley has also been named to Fortune Magazine’s list of Top 10 Most Promising Women Entrepreneurs.

Following the ceremony, many of the attendees would later recount with exuberance how empowered the event made them feel. For many, this event stood out as one of the few places where they could be with other women and talk about their trade. In an industry that continues to be dominated by men, that matters; and it only serves to highlight the continued relevance, and need, for ceremonies like the Industry Power Women Awards.

 


StaffStaffNovember 13, 2018
img_mjf-2.jpg

12min5980

New Name Reflects Potential Accelerated Growth Opportunities and
Expanded Acquisition Capabilities of the Combined Organization

New York, NY – November 13, 2018 /AxisWire/ MTech Acquisition Corp. (NASDAQ: MTEC) (“MTech”), the first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway LLC (“MJ Freeway”), a leading seed-to-sale technology provider and developer of the cannabis industry’s first enterprise resource planning platform, today announced “Akerna” as the name of the Nasdaq-listed public company following the consummation of the proposed merger of MTech and MJ Freeway.  MTech and MJ Freeway also announced that they will be attending the largest cannabis conference and expo in the world, The Marijuana Business Conference and Exposition (“MJBizCon”), taking place from November 14-16, 2018, at the Las Vegas Convention Center in Las Vegas, Nevada.  

The companies’ presence at the conference includes two booths:

  • Booth # 1849 will showcase the MJ Platform® technology with four interactive experiences highlighting how seed-to-sale data can enable better business performance
  • Booth # 2019 will feature Akerna, the company that will be created by the proposed merger of MTech and MJ Freeway.

Scott Sozio, Chief Executive Officer of MTech says, “Today’s announcement of Akerna marks a key milestone in the merger process. The name Akerna with “kern” at its center has dual meanings that are significant, both as the core of a computer’s operating system and its relationship to agriculture and growth. This new name reflects the full scope of MTech and MJ Freeway’s goals of providing the technology infrastructure for the cannabis industry while pursuing an aggressive growth strategy of accretive acquisition opportunities.”

Jessica Billingsley, CEO & Co-Founder of MJ Freeway, commented, “MJBizCon Vegas is an event MJ Freeway’s participated in for many years, and we are excited Akerna is now a part. When we started the company, our core focus was on providing compliance and technology solutions to the new cannabis market. With this proposed merger, we believe we will have the capital resources to expand and position ourselves as the dominant market leader in the cannabis SaaS space through a combination of continued organic growth and strategic acquisitions.”

Leadership from both MTech and MJ Freeway will be onsite for investor and press meetings.

As previously announced, MJ Freeway has entered into definitive agreements for a proposed merger with MTech.

About MJ Freeway

Founded in 2010, MJ Freeway is a leading cannabis technology company that creates and sells software, consulting and data solutions for cannabis businesses and government agencies, including cultivation management, point of sale, patient management, inventory tracking systems, and regulatory compliance reporting and monitoring.  MJ Freeway serves domestic clients in 29 states and the District of Columbia, as well as international clients in Australia, Canada, Chile, Colombia, Denmark, New Zealand, South Africa, Spain, Switzerland and Uruguay. Its regulatory software platform to state government regulatory agencies, Leaf Data Systems®, and seed-to-sale tracking software platform to commercial private businesses, MJ Platform®, have processed more than $13 billion in medicinal and recreational cannabis sales to date.

About MTech Acquisition Corp.

MTech Acquisition Corp. is a blank check company formed in September 2017 for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, recapitalization, exchangeable share transaction or other similar business transaction, one or more businesses or assets. MTech’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region, although it intends to focus its search on companies ancillary to the cannabis industry, with a particular sector focus that includes compliance, business intelligence, brand development and media. MTech is led by Chairman Steven Van Dyke and Chief Executive Officer Scott Sozio.

Forward Looking Statements

Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside MJ Freeway’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the inability to obtain MTech stockholder approval of the business combination with MJ Freeway; the inability to complete the transaction contemplated by the merger agreement governing such business combination because of failure of closing conditions or other reasons; the inability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, the amount of cash available following any redemptions by MTech stockholders; the ability of the new public company formed for the proposed MJ Freeway-MTech business combination (“Pubco”) to meet the listing standards of The Nasdaq Stock Market following the consummation of the transactions contemplated by the merger agreement; costs related to the proposed business combination; MJ Freeway’s ability to manage growth; the reaction of MJ Freeway’s customers and suppliers to the business combination; Pubco’s ability to identify and integrate other future acquisitions; rising costs adversely affecting MJ Freeway’s profitability; adverse changes to the legal environment for the cannabis industry; and general economic and market conditions impacting demand for MJ Freeway’s products and services.  See the risk factors that have been disclosed in the registration statement on Form S-4 that was filed with the U.S. Securities and Exchange Commission on November 6, 2018 for additional risks associated with the business combination. None of MTech, Pubco or MJ Freeway undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information

For additional information on the proposed transaction, see MTech’s Current Report on Form 8-K, which was filed with the SEC on October 11, 2018.

Investors and security holders of MTech are advised to read the draft of the registration statement, the preliminary proxy statement and amendments thereto, and, when available, the prospectus and the definitive proxy statement in connection with MTech’s solicitation of proxies for its special meeting of stockholders to be held to approve the proposed transaction because the proxy statement/prospectus will contain important information about the proposed transaction and the parties to the proposed transaction. The definitive proxy statement/prospectus will be mailed to stockholders of MTech as of a record date to be established for voting on the proposed transaction. Stockholders will also be able to obtain copies of the registration statement and proxy statement/prospectus, without charge, once available, at the SEC’s website at www.sec.gov or by directing a request to: MTech Acquisition Corp, c/o MTech Sponsor LLC, 10124 Foxhurst Court, Orlando, Florida 32836.

  Participants in the Solicitation

 

MTech, Pubco, MTech’s sponsor, and their respective directors, executive officers, other members of management, and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of MTech’s stockholders in connection with the proposed transaction.  Investors and security holders may obtain more detailed information regarding the names and interests in the proposed transaction of MTech’s directors and officers in MTech’s filings with the SEC, including MTech’s final prospectus for its initial public offering dated as of January 29, 2018 and that was filed with the SEC on January 30, 2018, and MTech’s Quarterly Reports on Form 10-Q, which were filed with the SEC on May 15, 2018 and August 8, 2018, and such information is also in the Registration Statement on Form S-4 filed with the SEC on November 6, 2018 which includes the proxy statement/prospectus of MTech for the proposed transaction.

No Offer or Solicitation

This communication shall not constitute 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 the offer, solicitation or sale would be unlawful prior to the 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.

 

Media Contact:

Jon Goldberg
KCSA Strategic Communications
Tel. 212.896.1282
Email: jgoldberg@kcsa.com

 


Debra BorchardtDebra BorchardtOctober 11, 2018
MJFreeway2.jpg

5min16750

Seed-to-sale technology provider MJ Freeway LLC has agrred to a merger with MTech Acquisition Corp.MTEC, -0.48 %, the first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry.

Following the consummation of the transaction, MTech and MJ Freeway will become subsidiaries of a newly-formed holding company to be listed on the NASDAQ (NDAQ) Stock Market.  According to the company statement, if there are no redemptions by MTech shareholders in connection with the MTech shareholder vote to approve the transaction, it is anticipated that the combined entity will be debt free and have over $60 million of balance sheet cash to take advantage of strategic growth opportunities.

Jessica Billingsley, MJ Freeway CEO at the recent Green Market Summit.

“We built MJ Freeway to be the technology infrastructure for the cannabis industry,” said Jessica Billingsley, Co-Founder & CEO of MJ Freeway. “With access to public capital markets and additional balance sheet strength as a result of this transaction, MJ Freeway will accelerate its growth and broaden its product offering as we strive to meet the ever-expanding demands of a highly complex and heavily regulated industry.”

Scott Sozio, Chief Executive Officer of MTech, said, “We believe technology solutions that empower operators to efficiently and compliantly run their business, with tools that track the full vertical from cultivation to consumer, are critical to the industry’s long-term success.  We believe MJ Freeway provides the most robust seed-to-sale software technology available today, positioning the company for enormous growth as the legalization of cannabis expands throughout the country and the world.”

Transaction Details

The company statement said that MJ Freeway equityholders will receive new shares of the newly merged company (“Pubco”) and MTech security holders will exchange their securities of MTech for securities of Pubco.  The shares of Pubco common stock to be issued to the MJ Freeway equity holders will have an aggregate value equal to $70,000,000, with each share of Pubco common stock valued at $10.16 per share.  

Cash proceeds released from MTech’s trust account, which trust account currently has approximately $58 million in cash, after any shareholder redemptions and payment of transaction expenses and other MTech liabilities, shall remain with the combined company. MJ Freeway equityholders are rolling 100% of their equity into the combined entity.

MJ Freeway

MJ Freeway is the developer of the cannabis industry’s first enterprise resource planning platform and is the largest global cannabis technology company which has tracked more than $10 billion in sales with clients in Australia, Europe, South America, New Zealand, Africa, Canada, and the United States in 29 states and the District of Columbia. MJ Freeway’s tracking software includes inventory control and grow management applications to streamline workflow and increase efficiency. MJ Freeway’s Leaf Data Systems software solution enables governments to track cannabis plants from seed-to-sale and ensure patient, public, and product safety.

Current MJ Freeway investor and Senior Strategic Advisor to the Board, Roger McNamee, added, “Cannabis companies that want to be leaders are adopting MJ Platform because I believe it is the only product with the technical foundation to support multi-line and multi-location operations. MJ Freeway prepares customers to manage high growth and complexity as the industry transitions from local to global scale.  MJ Freeway’s merger with MTech will enable a smart growth strategy to capitalize on the industry’s continuing growth.”

 


StaffStaffOctober 11, 2018
img_mjf-2.jpg

16min7640

Transaction Supported by MJ Freeway Owners, Including Prominent Tech Investor Roger McNamee-Implementing MTech’s Strategy to Provide Investors with Access to Cannabis Technology Sector

NEW YORK, Oct. 11, 2018 /AxisWire/ MTech Acquisition Corp. MTEC, -0.48%(“MTech”), the first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway LLC (“MJ Freeway”), a leading seed-to-sale technology provider and developer of the cannabis industry’s first enterprise resource planning platform, announced today they have entered into a definitive merger agreement. Following the consummation of the transaction, MTech and MJ Freeway will become subsidiaries of a newly-formed holding company (“Pubco”) to be listed on The Nasdaq Stock Market.  Following the closing of the transaction, if there are no redemptions by MTech shareholders in connection with the MTech shareholder vote to approve the transaction, it is currently anticipated that the combined entity will be debt free and have over $60 million of balance sheet cash to take advantage of strategic growth opportunities.

MJ Freeway is a seed-to-sale technology provider, with more than 30% of the global cannabis technology market based on management’s estimates.  MJ Freeway has tracked more than $10 billion in sales for its clients in Australia, Europe, South America, New Zealand, Africa, Canada, and the United States in 29 states and the District of Columbia. MJ Freeway’s software, MJ Platform®, includes compliance tracking of cannabis from seed-to-sale, as well as enterprise scale business management tools across the entire supply chain. In addition, its Leaf Data Systems® software solution enables governments to track cannabis plants from seed-to-sale to help ensure patient, public and product safety.

“We built MJ Freeway to be the technology infrastructure for the cannabis industry,” said Jessica Billingsley, Co-Founder & CEO of MJ Freeway. “With access to public capital markets and additional balance sheet strength as a result of this transaction, MJ Freeway will accelerate its growth and broaden its product offering as we strive to meet the ever-expanding demands of a highly complex and heavily regulated industry.”

Current MJ Freeway investor and Senior Strategic Advisor to the Board, Roger McNamee, added, “Cannabis companies that want to be leaders are adopting MJ Platform because I believe it is the only product with the technical foundation to support multi-line and multi-location operations. MJ Freeway prepares customers to manage high growth and complexity as the industry transitions from local to global scale.  MJ Freeway’s merger with MTech will enable a smart growth strategy to capitalize on the industry’s continuing growth.”

Scott Sozio, Chief Executive Officer of MTech, commented, “We believe technology solutions that empower operators to efficiently and compliantly run their business, with tools that track the full vertical from cultivation to consumer, are critical to the industry’s long-term success.  We believe MJ Freeway provides the most robust seed-to-sale software technology available today, positioning the company for enormous growth as the legalization of cannabis expands throughout the country and the world.  We are excited for MTech to be able to invest in MJ Freeway at what we believe to be a very attractive valuation.”

“This merger will prove valuable over the long-term. Not only will it allow us to grow our current lines of business, it will accelerate our dominant market share in the cannabis SaaS space and also allow the company to make strategic acquisitions and expand its reach into related industries,” noted, Senior Partner of Batu Capital, a MJ Freeway investor, and a current board member of MJ Freeway.

Summary of Transaction

Under the terms of the merger agreement, each of MTech and MJ Freeway will merge with newly formed subsidiaries of Pubco, which itself is a newly formed subsidiary of MTech.  As a result of such mergers, MJ Freeway equityholders will receive new shares of Pubco and MTech security holders will exchange their securities of MTech for securities of Pubco.  The shares of Pubco common stock to be issued to the MJ Freeway equity holders will have an aggregate value equal to Seventy Million U.S. Dollars($70,000,000), subject to adjustment for net working capital and indebtedness of MJ Freeway (as determined in accordance with the merger agreement), with each share of Pubco common stock valued at $10.16 per share.  Cash proceeds released from MTech’s trust account, which trust account currently has approximately $58 million in cash, after any shareholder redemptions and payment of transaction expenses and other MTech liabilities, shall remain with the combined company.  MJ Freeway equityholders are rolling 100% of their equity into the combined entity.

The transaction has been unanimously approved by the boards of both MTech and MJ Freeway.  Completion of the transaction is subject to approval by equityholders of each company and certain other conditions.  The transaction is currently anticipated to close by early 2019.

For additional information about the business combination, see MTech’s Current Report on Form 8-K (including the investor presentation included as an exhibit thereto), which will be filed promptly with the Securities and Exchange Commission and shall be available at the SEC’s website at www.sec.gov.

Ellenoff Grossman & Schole LLP is acting as legal advisors to MTech.  EarlyBirdCapital, Inc. is acting as financial advisors to MTech.  Graubard Miller is acting as legal advisors to MJ Freeway.

MTech and MJ Freeway intend to hold a conference call in the near future to discuss the transaction and will issue a separate release to announce when the call is scheduled.

About MJ Freeway

MJ Freeway® is the largest global cannabis technology company having tracked more than $10 billion in sales with clients in Australia, Europe, South America, New Zealand, Africa, Canada, and the United States in 29 states and the District of Columbia. Founded in 2010 by technologists creating tech specifically for cannabis businesses, MJ Freeway’s tracking software includes inventory control and grow management applications to streamline workflow and increase efficiency. MJ Freeway’s Leaf Data Systems software solution enables governments to track cannabis plants from seed-to-sale and ensure patient, public, and product safety. MJ Freeway also offers a complete suite of professional consulting services for cannabis businesses.  For more information, visit mjfreeway.com.

About MTech Acquisition Corp.

MTech Acquisition Corp. is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities.  MTech’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region, although MTech intends to focus its search on companies ancillary to the cannabis industry, with a particular sector focus that includes compliance, business intelligence, brand development and media.

MTech is led by Executive Chairman Steven Van Dyke and Chief Executive Officer Scott Sozio.

Forward Looking Statements

Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside MTech’s, MJ Freeway’s or Pubco’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the inability to obtain MTech stockholder approval of the business combination, the inability to complete the transaction contemplated by the merger agreement because of failure of closing conditions or other reasons; the inability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, the amount of cash available following any redemptions by MTech stockholders; the ability of Pubco to meet the listing standards of The Nasdaq Stock Market following the consummation of the transactions contemplated by the merger agreement; costs related to the proposed business combination; MJ Freeway’s ability to manage growth; the reaction of MJ Freeway’s customers and suppliers to the business combination; Pubco’s ability to identify and integrate other future acquisitions; rising costs adversely affecting MJ Freeway’s profitability; adverse changes to the legal environment for the cannabis industry; and general economic and market conditions impacting demand for MJ Freeway’s products and services.  See the risk factors disclosed in the S-4/proxy statement for the business combination for additional risks associated with the business combination.  None of MTech, Pubco or MJ Freeway undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information About the Transaction and Where to Find It

For additional information on the proposed transaction, see MTech’s Current Report on Form 8-K, which will be filed promptly.

The proposed transaction will be submitted to shareholders of MTech for their approval.  In connection with the proposed business combination, Pubco will file with the SEC a registration statement on Form S-4 for the Pubco securities to be issued to MTech and MJ Freeway security holders at the closing of the business combination, which registration statement will contain preliminary and definitive proxy statements of MTech in connection with a special meeting of the stockholders of MTech to consider and vote on the business combination and related matters.  Pubco and MTech will mail the definitive registration statement on Form S-4 containing the definitive proxy statement and other relevant documents to its stockholders in connection with the meeting. Investors and security holders of MTech and MJ Freeway are advised to read, when available, the draft of the registration statement, the preliminary proxy statement, and amendments thereto, and the definitive registration statement and proxy statement, which will contain important information about the proposed business combination and the parties to it. The registration statement and definitive proxy statement will be mailed to stockholders of MTech as of a record date to be established for voting on the proposed business combination.  Stockholders will also be able to obtain copies of the registration statement and proxy statement, without charge, once available, at the SEC’s website at www.sec.govor by directing a request to: MTech Acquisition Corp., 10124 Foxhurst Court, Orlando, Florida, 32836, attention: Chief Executive Officer.

Participants in the Solicitation

MTech, Pubco, MJ Freeway, and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of MTech stockholders in connection with the proposed business combination.  Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of MTech’s directors in the final prospectus for MTech’s initial public offering dated as of January 29, 2018 and that was filed with the SEC on January 30, 2018, and well as in any annual reports on Form 10-K that may be filed with the SEC.  Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be contained in the proxy statement when it becomes available.

No Offer or Solicitation

This communication shall not constitute 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 the offer, solicitation or sale would be unlawful prior to the 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.

Media Contact:

Jon Goldberg
KCSA Strategic Communications
Tel. 212.896.1282
Email: jgoldberg@kcsa.com



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 8 hours

Our biggest fans this week: WallandBroad, IMITAKCO, Gambiste1. Thank you! via

@GreenMarketRpt – 21 hours

My week on Twitter 🎉: 1 Mention, 823 Mention Reach, 4 Likes, 7 Retweets, 29K Retweet Reach. See yours with…

@GreenMarketRpt – 1 day

Our biggest fans this week: WallandBroad, IMITAKCO, Gambiste1. Thank you! via

Back to Top

You have Successfully Subscribed!