Akerna Completes Acquisition of Majority Interest in Anti-Counterfeiting Technology Leader solo sciences
DENVER, Jan. 21, 2020 (GLOBE NEWSWIRE) -- Akerna (Nasdaq: KERN), a leading cannabis compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), has completed its acquisition of a majority interest in privately-held solo sciences inc., a recognized leader of patented anti-counterfeiting and consumer engagement technologies.
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solo*TAG is an alternate tagging technology to expensive RFID technology required by states in which Metrc is used for the state tracking system. solo*TAG is less expensive and more secure than RFID technology, leveraging solo science’s patented cryptographically secure technology. Leaf Data Systems, Akerna’s government track and trace software, won the first state cannabis tracking system Request for Proposal (RFP) to which Akerna responded with solo*TAG included.
solo sciences tech platform is also complementary to Akerna’s MJ Platform ERP system and is driving consumer safety through its anti-counterfeiting technology and alert functionality. Manufacturers that use a solo*CODE™ proprietary graphic trust mark on their product packaging enable consumers to scan products with the solo* phone app and learn if a product is real or fake and get real-time notifications.
“This investment is the tangible result of our long term growth initiative and another important step towards Akerna’s continuing commitment to creating the pre-eminent global technology platform addressing the entire supply chain and its regulatory bodies through accountability and transparency,” said Jessica Billingsley, chief executive officer, Akerna. “From our perspective, this technology is important to consumer safety and transparency. Using solo*CODE and the solo* app, consumers can confirm product authenticity, get in-depth information about what they’re buying, and view related products.”
solo sciences technology surpasses legacy authentication tools by closing the loop between the user and the manufacturer. Holograms and RFID tags have the potential to give a false sense of security, but each solo*TAG and solo*CODE has a unique fingerprint for every package, augmented by the solo* app, which confirms if a product is real or fake. Beyond authentication, for solo*CODE, the app offers users a plethora of benefits, including learning about the product and earning rewards.
“We are excited about the combined potential for growth and value creation,” said John Fowle, chief financial officer, Akerna. “Demand for solo products remains strong with growing interest from a variety of brands and regulatory agencies. With the assets we have as a result of this strategic combination, we are well-positioned to deliver strong performance and return on shareholder value.”
- The Utah Department of Health and Department of Agriculture awarded Akerna, through its collaboration with solo*sciences, a contract to implement its seed-to-sale tracking platform, Leaf Data Systems® (Leaf Data), for its medical cannabis program. Utah is the first state to use Leaf Data Systems with the solo*TAG as part of its traceability platform for cannabis businesses and regulatory bodies.
- In December, solo sciences and 14th Round agreed to protect consumers from counterfeit products. The solo sciences trust mark authentication will be a default feature for 14th Round’s high-profile cannabis vaporizer brands. 14th Round creates and supplies custom hardware and packaging for an estimated 40 plus percent of California’s vaporizer market.
Akerna’s Leaf Data Systems and solo*TAG™ – an innovative, next-generation solution for state and national governments to securely track product and waste throughout the supply chain. Leaf Data Systems track and trace software provides:
- Real-time data to cannabis cultivators, infused product producers, dispensaries and collectives; tightly integrated with solo*TAG.
- More transparency and accountability with Leaf Data’s closed-loop between governments and licensees eliminates alternate data collection sources, which reduces error, improves security, and increases accountability. The advanced solo*TAG technology is also assigned to each plant, batch, inventory item, and provides a chain-of-custody from seed-to-self for detailed transparency.
- Less cost to licensees through solo science’s patented solo*TAG, a unique digital fingerprint that eliminates the need for expensive technologies like holograms and RFID. The solo*TAG also costs a fraction of the cost of current tagging technology, reducing some of the compliance cost burdens for cannabis licensees.
- Mobile capabilities with solo*TAG being mobile-app enabled, Leaf Data is now the first mobile-enabled, seed-to-sale government traceability platform for cannabis businesses and regulatory bodies.
How Akerna and solo* tech are complementary: Akerna’s MJ Platform and solo*CODE innovative integrated technology for consumers and brands brings a consumer-facing mark designed to highlight the authenticity and signify transparency. MJ Platform – Akerna’s seed-to-sale system provides:
- Transparency and accountability throughout the product life cycle, capturing every interaction with the plant and product from cultivation to sales. Now visibility extends to customers with the integration of solo*CODE.
- solo*CODE (a unique graphic ID or “fingerprint” for each package) – can be integrated into ready-for-sale products, scanned via a mobile app free to the public and available so consumers can validate product authenticity and provide accurate information about the product’s life cycle while enabling the consumers to earn rewards across retailers, and give feedback directly to the brand.
- solo* mobile-first, patented tech platform – leverages the power of today’s mobile devices by allowing the solo* app to scan the proprietary solo*CODE graphic mark to create a cryptographically secure closed-loop authentication system.
Akerna is a global regulatory compliance technology company in the cannabis space. Akerna’s service offerings include MJ Platform®, Leaf Data Systems®, and solo sciences tech platform. Since its establishment in 2010, the company has tracked more than $17 billion in cannabis sales. As part of its business strategy, Akerna intends to grow through targeted, strategic acquisitions that are complementary to its current business and organically by accelerating its product development efforts. Akerna is based in Denver.
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D. Nikki Wheeler
Released January 21, 2020