E How Viridian Sciences Fits In Akerna’s Business Model

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One of the biggest bottlenecks that the cannabis industry has faced over the last decade is a lack of a clear regulatory framework. For instance, in the US, some states allow controlled levels of production, usage, and marketing of cannabis products while others allow specific uses of the product. This is a conundrum that has proved very challenging to cannabis companies especially when coming up with long-term strategies.

However, the world’s first compliance and analytics technology company in the cannabis industry Akerna Corp (Nasdaq: KERN) could help address some of the flaws that have held the industry back. The company has developed platforms that facilitate the tracking of cannabis products from seed to sale.

Regulatory institutions could use this technology to ensure that the mainstream cannabis industry operates without the drawbacks of the unregulated market. This creates a clear playing field, which could be a significant attraction to companies looking to get into the cannabis business.

The company recently completed the acquisition of Viridian Sciences, an Enterprise Resource Management software provider for cannabis businesses. This acquisition revamps Akerna by making it the only cannabis-compliant SAP Business One offering the market. It will enable Akerna to offer cannabis clients software products for both compliance and analytics, while at the same time helping them to integrate all their business operations. Integration of all financial, accounting, taxation, and supply chain operations could be key given the rapid growth of the cannabis industry in the coming years. Viridian, in addition to Akerna’s other products, will play a key role in helping businesses to adapt to modern financial accounting and reporting practices.

Globally, cannabis sales were estimated at $21.3 billion in 2020, an increase of about 48% from 2019’s figure of about $14.4 billion. Current estimates project that sales will cross the $55 billion mark by 2026.

Fitting Viridian in Akerna’s business model

Prior to this acquisition, Akerna had six products on offer. They all focus on helping companies to gain market insights while at the same time creating a more transparent environment. Viridian expands its product offering to ERP solutions.

An overview of Akerna’s leading products

(Click on image to enlarge)

MJ Freeway

Its leading product the MJ Freeway platform is a hub where business analysts can find all the information about the industry transactions. It also helps to track cannabis products from seed to sale.

In one of the latest flash reports, US legal cannabis sales are predicted to reach $370 million between April 16 and April 20. April 20 is an unofficial cannabis consumption holiday. The market is expected to report about $95 million worth of cannabis sales on the holiday date.

Late last month, the company released another report that showed a significant increment in cannabis sales on St. Patrick’s day following the release of the stimulus checks in the US. Such insights can help cannabis businesses plan future production accordingly in anticipation of a spike in sales. 

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Disclosure: This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their ...

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Alpha Stockman 1 month ago Member's comment

Thanks for putting this stock on my radar. $KERN

Beating Buffett 1 month ago Member's comment

Nice analysis.

Alexandra Gray 1 month ago Member's comment

Good read, thanks.