POSaBIT sets sights on achieving EBITDA profitability by the close of 2023.

POSaBIT, with ticker symbols TSXV: PBIT and OTC:

POSAF, is making impressive strides towards profitability. Specializing in financial technology for the cannabis industry, POSaBIT offers cashless payment services and a top-notch Point-of-Sale system. By focusing on innovative software and technology, the company aims to address the challenges associated with the cash-only nature of the industry.

Here are a few advantages POSaBIT offers over cash:

• In typical retail environments, cash transactions account for only 11% of all transactions, down from 16% in 2018.
• The average card transaction is nearly double the average cash transaction.
• Around 70% of all dispensaries across the USA still operate exclusively on a cash basis.

POSaBIT has experienced significant growth since its establishment in November 2015. Going public in 2019, the company launched its first fully mobile Point-of-Sale System, achieved profitability, and has been expanding through strategic acquisitions. The recent addition to their portfolio is Hyper, a payments solutions provider. Hyper's Hypur division is a prominent supplier of compliant payment and bank compliance solutions for high-risk sectors, including cannabis businesses. Through this acquisition, POSaBIT can now offer a comprehensive range of payment and compliance solutions to the cannabis industry, including PIN debit payment processing, Hypur Pay, the industry's leading ACH eCommerce and mobile payment solution, and Hypur Comply, compliance software for financial institutions serving the cannabis sector.

"We are excited to announce the acquisition of Hypur by POSaBIT, marking a significant milestone in our expansion within the rapidly growing cannabis payments and point-of-sale market," said Ryan Hamlin, CEO and Co-founder of POSaBIT.

Looking at the company's financials, POSaBIT expects to generate revenue between $60M and $63M, with a gross profit of $15M to $17M, leading to a positive EBITDA for 2023. Despite reporting a loss of $1.2M in the quarter ending September 30, 2022, POSaBIT's growth rate has been outpacing the overall cannabis market. The acquisition of Hypur and other companies like MJ Platform, Leaf Data Systems, and Ample Organics is expected to further boost revenue and gross profit.

In terms of share structure, POSaBIT currently has 138.4M shares issued and outstanding, along with 10.3M warrants at an average price of $0.27 and 12M options at an average price of $0.14. Additionally, there are $1M restricted share units priced at $0.83. The stock price has experienced fluctuations, starting at $0.18 in January 2021, reaching an all-time high of $2.00 in November 2021, and currently remaining above the dollar range but with some depreciation. The 52-week range of the stock price has been between $0.50 and $1.47.

In summary, POSaBIT (TSXV: PBIT, OTC: POSAF) continues to demonstrate impressive growth. With multiple acquisitions and a clear path to positive EBITDA by the end of 2023, the company remains a strong asset despite recent market fluctuations. The future looks promising for POSaBIT (TSXV: PBIT, OTC: POSAF) as it continues to expand and solidify its position in the cannabis industry. The company's strategic acquisitions, including Hyper and other notable businesses, have significantly enhanced its revenue potential and positioned it as a leader in the market.

POSaBIT's acquisition of Hyper, particularly its Hypur division, strengthens the company's offering by providing comprehensive payment and compliance solutions for cannabis businesses. With the integration of Hypur's technology, POSaBIT can now provide a one-stop shop for payment processing and banking compliance requirements. This expansion of services not only benefits cannabis dispensaries, processors, growers, and distributors but also financial institutions operating in this sector.

CEO and Co-founder Ryan Hamlin expresses enthusiasm for the acquisition, highlighting the significant milestone it represents for POSaBIT's growth in the cannabis payments and point-of-sale market. By leveraging the expertise and solutions brought by Hyper, POSaBIT is well-positioned to further capitalize on the expanding cannabis industry.

Looking at the financial outlook, POSaBIT's guidance for 2023 demonstrates its strong growth trajectory. The company expects to generate revenue between $60M and $63M, with a gross profit ranging from $15M to $17M. Most notably, POSaBIT aims to achieve positive EBITDA by the end of 2023. These projections reflect the company's commitment to financial success and its ability to outpace the overall growth rate of the cannabis market.

While POSaBIT reported a loss of $1.2M for the quarter ending September 30, 2022, it is important to consider the ongoing acquisitions. For example, Hypur alone generated $5.3M in revenue and $1.3M in gross profit. The incorporation of other acquired companies, such as MJ Platform, Leaf Data Systems, and Ample Organics, is expected to contribute approximately $11M in revenue and $6.8M in gross profit. As these businesses are integrated and synergies are realized, POSaBIT's financial performance is likely to improve.

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In terms of share structure, POSaBIT currently has 138.4M shares issued and outstanding. Additionally, there are 10.3M warrants priced at an average of $0.27 and 12M options priced at an average of $0.14. The company also has $1M in restricted share units priced at $0.83. While the stock price has experienced fluctuations, it has shown significant growth from $0.18 in January 2021 to reaching an all-time high of $2.00 in November 2021. Despite some depreciation, the stock price remains above the dollar range.

In conclusion, POSaBIT (TSXV: PBIT, OTC: POSAF) continues its remarkable growth trajectory within the cannabis industry. With a strong focus on expanding its services, strategic acquisitions, and a clear path to achieving positive EBITDA by the end of 2023, the company is poised for continued success. Investors and stakeholders can look forward to POSaBIT capitalizing on its market position and delivering value in the evolving cannabis landscape.

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