TORONTO & SEATTLE–(BUSINESS WIRE)–POSaBIT Systems Corporation (“POSaBIT” or the “Company”), a leading
financial technology company delivering unique blockchain-enabled
payment processing and point-of-sale (POS) systems for cash-only
businesses with a focus on the cannabis industry, today announced that
following the completion of its reverse takeover transaction it has
begun trading on the Canadian Securities Exchange (CSE) under the ticker
“PBIT”.
“This is a significant achievement for POSaBIT and we are proud to make
this important transition from the private to the public markets,” said
Ryan Hamlin, co-founder and CEO of POSaBIT. “The past year has been an
exciting one for the company, marked by a series of milestones. We
continued to expand geographically in the California, Colorado and
Washington markets, successfully completed the acquisition of
DoubleBeam, and rolled-out a fully-integrated POS and payments platform
that fulfills an unmet need in the cannabis industry. Our service is now
in use at over 120 cannabis merchants across various US states. We are
pleased with our traction in the market, as demonstrated by our strong
year-to-date growth, and are very encouraged by the continued momentum
we saw as we closed out 2018.”
2018 Corporate Milestones
-
For the nine months ended Sept. 30, 2018, the Company generated USD
$1.39 million in revenue (with cost of sales of USD $1.4 million), a
266% increase over the prior year comparable period (and an increase
in cost of sales of 226% over the prior year comparable period). -
The Company expanded its footprint in California, Nevada, Oklahoma,
Colorado and Washington. -
In February 2018, POSaBIT completed the acquisition of DoubleBeam,
which specializes in POS payment processing for the Hospitality sector. -
The Company enhanced its payment service offering by developing
incremental features to sell and accept both Litecoin and Bitcoin for
purchases, as well as perform EMV card compliance on debit card
transactions – helping merchants navigate complex payment requirements. -
POSaBIT designed and released a new front-end POS console that is
uniquely suited for cash-only merchants such as the Cannabis industry.
This entirely new console offers an array of key features, including
loyalty programs, in-store digital menus, online ordering / in-store
pickup, inventory management, state seed-to-sale compliance, and
customizable discounts. -
POSaBIT also completed all of the necessary state requirements to
support the Leaf system, a seed-sale track and trace software system
used by regulators in the State of Washington. -
The Company moved its corporate headquarters to a larger location in
Kirkland, WA, which will support continued growth and expansion plans. -
Pursuant to private placement financings undertaken in conjunction
with the listing, POSaBIT generated gross proceeds of $1.3M.
“We believe our all-in-one payment and POS solution provides a unique
and compelling offering that enables cash-only businesses, like those
typical to the cannabis industry, to provide their consumers with an
alternative to cash, while still satisfying retail customer experience
expectations,” Hamlin added. “We believe the cannabis industry
represents a large and growing opportunity for our offerings. With the
successful completion of our listing on the CSE, we are pleased to have
the additional capital needed to accelerate our growth in this rapidly
expanding market. Our solution fills an unmet need, enables merchants to
remain compliant in a highly regulated industry, and drives sales. We
think this is a winning combination that will fuel our growth in 2019.”
POSaBIT was founded and incorporated in 2015 and is led by a team of
executives with deep expertise across the technology space. POSaBIT
Co-founder and CEO Ryan Hamlin brings over 27 years of software
development, management experience, and entrepreneurship, including
founding PlaceFull in 2011 and holding former leadership posts at
Microsoft and MSN. Co-founder Jon Baugher heads up sales execution,
revenue growth, and customer success utilizing his 28 years of global
hardware and software technology sales experience. Full biographical
information for the leadership is available here.
Reverse Takeover Transaction Details
POSaBIT, formerly Foreshore Exploration Partners Corp, changed its name
to POSaBIT Systems Corporation and acquired by way of a plan of merger
all of the issued and outstanding shares of POSaBIT, Inc. through the
merger of its wholly-owned subsidiary with POSaBIT, Inc. as the
surviving entity. POSaBIT now has a total of 75,431,225 common shares
issued and outstanding, with the directors and officers of the Company,
in aggregate, holding 20,434,034 shares, which are subject to escrow
restrictions. In connection with the merger, POSaBIT assumed the
outstanding stock options of POSaBIT, Inc. and has outstanding an
aggregate of 12,305,468 stock options to acquire common shares in the
capital of the company.
Tormont Group Inc. acted as advisor to POSaBIT in connection with the
transaction and listing.
Financial Reports
Full details of the financial and operating results for the third
quarter and first half of 2018 are described in the company’s
consolidated financial statements with accompanying notes and related
management’s discussion and analysis. These documents and additional
information on POSaBIT are available in the final prospectus dated March
25, 2019 of the Company, a copy of which is available under the
Company’s SEDAR profile at www.sedar.com.
Financial Outlook
POSaBIT provides guidance based on current market conditions and
expectations. Please refer to the comments below regarding
forward-looking statements.
For the full year ended December 31, 2018, the company currently expects:
- Transactional sales to total approximately USD $22 million
-
Revenue run rate to total approximately USD $5 million, which includes
the DoubleBeam acquisition -
To expand its footprint in California, Colorado and Washington, and
enter into several other recreational legal states in the US.
For the full year 2019, the company currently expects:
-
Transactional sales to be over USD $100 million, assuming the average
store processes between USD $350,000 and USD $500,000 per year through
the POSaBIT service - Revenue to grow in the range of approximately 80% to 100%
- Cost of sales in the range of $5.5 million to $6.0 million
-
To expand its footprint to 5 additional recreational states and up to
10 additional medical states, based approximately on adding 2 states
in the first quarter, 3 in the second quarter, 4 in the third quarter
and 6 in the fourth quarter.
About POSaBIT
POSaBIT (CSE: PBIT) is a financial technology company that delivers
unique and innovative, blockchain-enabled payment processing and
point-of-sale systems for cash-only businesses. POSaBIT specializes in
resolving pain points for complex, high-risk, emerging industries like
cannabis with an all-in-one solution that is compliant, user-friendly
and utilizes top-of-the-line hardware. POSaBIT’s unique solution
provides a safer and transparent environment for merchants while
creating a better overall experience for the consumer. For additional
information, visit: www.posabit.com.
Forward-Looking Statements
This press release contains forward-looking statements, including
statements regarding our business strategy, product development, timing
of product development, events and courses of action. Statements which
are not purely historical are forward-looking statements and include any
statements regarding beliefs, plans, outlook, expectations or intentions
regarding the future including words or phrases such as “anticipate,”
“objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,”
“expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is
designed to” or similar expressions suggest future outcomes or the
negative thereof or similar variations. Forward-looking statements may
include, among other things, statements about: our expectations
regarding our expenses, sales and operations; our future customer
concentration; our anticipated cash needs and our estimates regarding
our capital requirements and our need for additional financing our
ability to anticipate the future needs of our customers; our plans for
future products and enhancements of existing products; our future growth
strategy and growth rate; our future intellectual property; and our
anticipated trends and challenges in the markets in which we operate.
Such statements and information are based on numerous assumptions
regarding present and future business strategies and the environment in
which POSaBIT will operate in the future, including the demand for our
products, anticipated costs and ability to achieve goals. Although we
believe that the assumptions underlying these statements are reasonable,
they may prove to be incorrect. Given these risks, uncertainties and
assumptions, you should not unduly rely on these forward-looking
statements.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to, business,
economic and capital market conditions; the ability to manage our
operating expenses, which may adversely affect our financial condition;
our ability to remain competitive as other better financed competitors
develop and release competitive products; regulatory uncertainties;
market conditions and the demand and pricing for our products; our
relationships with our customers, distributors and business partners;
our ability to successfully define, design and release new products in a
timely manner that meet our customers’ needs; our ability to attract,
retain and motivate qualified personnel; competition in our industry;
our ability to maintain technological leadership; our ability to manage
risks inherent in foreign operations; the impact of technology changes
on our products and industry; our failure to develop new and innovative
products; our ability to successfully maintain and enforce our
intellectual property rights and defend third-party claims of
infringement of their intellectual property rights; the impact of
intellectual property litigation that could materially and adversely
affect our business; our ability to manage working capital; and our
dependence on key personnel. POSaBIT is an early stage company with a
short operating history; it may not receive any future product sales
revenue or achieve profitability; and it may not actually achieve its
plans, projections, or expectations.
Important factors that could cause actual results to differ materially
from POSaBIT’s expectations include, consumer sentiment towards
POSaBIT’s products and blockchain/cryptocurrency exchange technology
generally, litigation, global economic climate, loss of key employees
and consultants, additional funding requirements, changes in laws,
technology failures, competition, and failure of counterparties to
perform their contractual obligations.
Except as required by law, we undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future event or otherwise, after the date on which the
statements are made or to reflect the occurrence of unanticipated
events. Neither we nor any of our representatives make any
representation or warranty, express or implied, as to the accuracy,
sufficiency or completeness of the information in this presentation.
Neither we nor any of our representatives shall have any liability
whatsoever, under contract, tort, trust or otherwise, to you or any
person resulting from the use of the information in this presentation by
you or any of your representatives or for omissions from the information
in this presentation.
Contacts
Investor Relations:
Chelsea Lish
The Blueshirt Group
for POSaBIT
415-217-7722
investors@posabit.com
Media Relations:
Katie North
The Blueshirt Group for
POSaBIT
415-217-4963
katie@blueshirtgroup.com
Management:
Ryan Hamlin
Co-founder and CEO of POSaBIT
415-217-7722
investors@posabit.com
