Akerna Corp.
Exhibit 10.2
0000 Xxxxxxx Xxxxxx, #000
Denver, Colorado 80202
January 27, 2023
High Trail Investments ON LLC
c/o High Trail Capital LP
00 Xxxxx Xxxxxx, Xxxxx 0X
Hoboken, NJ 07030
| Re: | Conversion Price Reduction |
Dear Sirs:
Reference is hereby made to that certain Securities Purchase Agreement, dated October 5, 2021, by and among Akerna Corp., a Delaware corporation with offices located at 0000 Xxxxxxx Xxxxxx, #000, Xxxxxx, Xxxxxxxx 00000 (the “Company”), the investor signatory hereto (“you” or the “Investor”) and certain other buyers signatory thereto (as amended, the “Securities Purchase Agreement”), pursuant to which you acquired, among other things, certain senior secured convertible notes (as amended, including any senior secured convertible notes issued in exchange therefor, the “Securities”) convertible into shares of Common Stock (as defined in the Securities Purchase Agreement) in accordance with the terms of the Securities. Capitalized terms not defined herein shall have the meaning as set forth in the Securities Purchase Agreement or the Securities, as applicable.
Pursuant to Section 7(f) of the Securities, we hereby provide you with notice that the Company desires your consent pursuant to Section 7(f) of the Securities, to lower the Conversion Price of your Securities for each date after the Effective Time (as defined below) (each, a “Conversion Price Reduction”, and each such date, a “Conversion Price Reduction Measuring Date”), effective (the “Effective Time”) as of the time of your execution of this letter, to $1.20 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events during such measuring period, the “New Alternate Conversion Price”); provided, that at any time after 6 p.m. New York city time and prior to 6 a.m. New York city time on any given date of determination (each, a “Termination Eligibility Period”), the Company may, by delivery written notice to the Investor (each, a “Termination Notice”), terminate the Investor’s right to effect any future Conversion Price Reductions pursuant to this letter (the time of such delivery, the “Conversion Price Reduction Termination Time”); provided however that the Company may not deliver any Termination Notice hereunder prior to the date that is the later of (i) 14 calendar days from the Effective Time and (ii) the date on which the Company closes on a Subsequent Placement for a minimum of $500,000 in gross aggregate proceeds, which Subsequent Placement will not include the offering of Excluded Securities (as defined in the Securities); provided, further, that (x) a Termination Notice shall only be effective if delivered to the Investor during a Termination Eligibility Period, (y) notwithstanding the delivery of a Termination Notice to the Investor during a Termination Eligibility Period, the Company remains obligated to honor all conversions of the Securities (including, without limitation, any shares of Common Stock to be delivered to the Investor (or its designee) with respect thereto) at the applicable New Alternate Conversion Price occurring prior to such applicable Conversion Price Reduction Termination Time. Please execute this letter in the signature block below if you consent to the Company effecting the Conversion Price Reduction.
The Company shall, on or before 8:30 a.m., New York City time, on the first business day after the date of this letter, file a Current Report on Form 8-K with the SEC disclosing all material terms of the transactions contemplated hereby and attaching the form of this letter as an exhibit thereto (collectively with all exhibits attached thereto, the “8-K Filing”). From and after the filing of the 8-K Filing with the SEC, the Investor shall not be in possession of any material, nonpublic information received from the Company or any of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the issuance of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any letter, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting transactions in securities of the Company.
The Company shall reimburse Xxxxxx Xxxx & Xxxxxx LLP for all reasonable costs and expenses incurred by it in connection with preparing and delivering this letter (including, without limitation, all reasonable legal fees and disbursements in connection therewith, and due diligence in connection with the transactions contemplated thereby).
Section 9 of the Securities Purchase Agreement is hereby incorporated by reference herein, mutatis mutandis.
If you have any questions regarding the foregoing, please feel free to contact Xxxxxxx Xxxxxxxxxxx at (000) 000-0000 by email to xxx@xxxxxx.xxx.
| Sincerely, | |||
| AKERNA CORP. | |||
| By: | |||
| Name: | Xxxxxxx Xxxxxxxxxxx | ||
| Title: | Chief Executive Officer | ||
| Agreed to and Acknowledged: | |||
| HIGH TRAIL INVESTMENTS ON LLC | |||
| By: | |||
| Name: | |||
| Title: | |||
0000 Xxxxxxx Xxxxxx, #000
Denver, Colorado 80202
January 27, 2023
Alto Opportunity Master Fund,
SPC - Segregated Master Portfolio B
00 Xxxx Xx Xxxx, 0xx Xxxxx
Westport, CT 06880
| Re: | Conversion Price Reduction |
Dear Sirs:
Reference is hereby made to that certain Securities Purchase Agreement, dated October 5, 2021, by and among Akerna Corp., a Delaware corporation with offices located at 0000 Xxxxxxx Xxxxxx, #000, Xxxxxx, Xxxxxxxx 00000 (the “Company”), the investor signatory hereto (“you” or the “Investor”) and certain other buyers signatory thereto (as amended, the “Securities Purchase Agreement”), pursuant to which you acquired, among other things, certain senior secured convertible notes (as amended, including any senior secured convertible notes issued in exchange therefor, the “Securities”) convertible into shares of Common Stock (as defined in the Securities Purchase Agreement) in accordance with the terms of the Securities. Capitalized terms not defined herein shall have the meaning as set forth in the Securities Purchase Agreement or the Securities, as applicable.
Pursuant to Section 7(f) of the Securities, we hereby provide you with notice that the Company desires your consent pursuant to Section 7(f) of the Securities, to lower the Conversion Price of your Securities for each date after the Effective Time (as defined below) (each, a “Conversion Price Reduction”, and each such date, a “Conversion Price Reduction Measuring Date”), effective (the “Effective Time”) as of the time of your execution of this letter, to $1.20 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events during such measuring period, the “New Alternate Conversion Price”); provided, that at any time after 6 p.m. New York city time and prior to 6 a.m. New York city time on any given date of determination (each, a “Termination Eligibility Period”), the Company may, by delivery written notice to the Investor (each, a “Termination Notice”), terminate the Investor’s right to effect any future Conversion Price Reductions pursuant to this letter (the time of such delivery, the “Conversion Price Reduction Termination Time”); provided however that the Company may not deliver any Termination Notice hereunder prior to the date that is the later of (i) 14 calendar days from the Effective Time and (ii) the date on which the Company closes on a Subsequent Placement for a minimum of $500,000 in gross aggregate proceeds, which Subsequent Placement will not include the offering of Excluded Securities (as defined in the Securities); provided, further, that (x) a Termination Notice shall only be effective if delivered to the Investor during a Termination Eligibility Period, (y) notwithstanding the delivery of a Termination Notice to the Investor during a Termination Eligibility Period, the Company remains obligated to honor all conversions of the Securities (including, without limitation, any shares of Common Stock to be delivered to the Investor (or its designee) with respect thereto) at the applicable New Alternate Conversion Price occurring prior to such applicable Conversion Price Reduction Termination Time. Please execute this letter in the signature block below if you consent to the Company effecting the Conversion Price Reduction.
The Company shall, on or before 8:30 a.m., New York City time, on the first business day after the date of this letter, file a Current Report on Form 8-K with the SEC disclosing all material terms of the transactions contemplated hereby and attaching the form of this letter as an exhibit thereto (collectively with all exhibits attached thereto, the “8-K Filing”). From and after the filing of the 8-K Filing with the SEC, the Investor shall not be in possession of any material, nonpublic information received from the Company or any of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the issuance of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any letter, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting transactions in securities of the Company.
The Company shall reimburse Xxxxxx Xxxx & Xxxxxx LLP for all reasonable costs and expenses incurred by it in connection with preparing and delivering this letter (including, without limitation, all reasonable legal fees and disbursements in connection therewith, and due diligence in connection with the transactions contemplated thereby).
Section 9 of the Securities Purchase Agreement is hereby incorporated by reference herein, mutatis mutandis.
If you have any questions regarding the foregoing, please feel free to contact Xxxxxxx Xxxxxxxxxxx at (000) 000-0000 or by email to xxx@xxxxxx.xxx.
| Sincerely, | |||
| AKERNA CORP. | |||
| By: | |||
| Name: | Xxxxxxx Xxxxxxxxxxx | ||
| Title: | Chief Executive Officer | ||
| Agreed to and Acknowledged: | |||
| ALTO OPPORTUNITY MASTER FUND, SPC - SEGREGATED MASTER PORTFOLIO B |
|||
| By: | |||
| Name: | |||
| Title: | |||
