This afternoon, MTech Acquisition Corp. (MTEC), announced that they have closed their business combination with MJ Freeway, LLC, a leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform. The combined company will form and be named Akerna Corp. (“Akerna”) and the shares of common stock and warrants of Akerna will begin trading on The Nasdaq tomorrow, June 18, 2019, under the symbols “KERN” and “KERNW,” respectively.
Additionally, MTech also filed the results of their shareholder vote with 65.24% of the total shares outstanding (as of the Record Date) participating. The vote to approve the merger was as follows:
However, as SPACs are sometimes wont to do, no details were given on the number of redemptions or at what price those shares were redeemed. As a result, we don’t know how much was left in trust post-vote. Although, we can probably infer that there were more redemptions than was comfortable or else the company would have included that information. Regardless, another SPAC crossed the finish line and we get to move a name from the “Announced” column to the “Completed” column.
However, as further evidence of a heavy amount of redeptions, if you were watching how MTEC traded this morning, you would have seen a bit of spike in the share price. MTEC’s share jumped from a previous close of $10.50 all the way to $14.69, at one point. It’s come down a bit since then and is currently trading around $11.98, but remember, low float stocks (post-vote) are volatile. Even small trading volumes can move the price dramatically, as we’ve seen with PHUN, ORGO and RBZ.