The Daily Hit is a recap of the top financial news stories for January 30, 2023.
On the Site
IIP
An investor group is suing Innovative Industrial Properties (IIP) (NYSE: IIPR) for not doing proper due diligence in its Kings Garden investment. Investor Michael Mallozzi originally sued IIP in April 2022, when the Blue Orca Capital report came out. He was then joined by investors Alejandro Handal and Stephen Forrester. They are claiming IIP mislead investors, was incompetent, and broke securities laws. In December, IIP asked the court to dismiss the case, but the latest brief asks the court to deny that request to dismiss because IIP was aware that Kings Garden was a Ponzi scheme while telling investors everything was OK. Read more here.
Akerna
Akerna Corp. (Nasdaq: KERN) said on Friday afternoon that it will merge with a bitcoin mining company and offload its software business to POSaBIT Systems Corporation (CSE: PBIT) (OTC: POSAF) for stock and cash, respectively. Akerna will sell its MJ Freeway business units, including MJ Platform and Leaf Data System brands, and Ample Organics to POSaBIT for $4 million in cash. The company said it plans to use the proceeds of the transaction, after expenses, to pay its remaining outstanding accounts payable and pay down any remaining principal balance on its outstanding senior secured convertible notes, in addition to net cash requirements associated with the proposed merger between Akerna and Gryphon. Read more here.
Flora Growth
