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POSaBIT Secures $3.63M Private Offering, Aiming To Reach 8 More States

POSaBIT Systems Corporation POSAF PBIT the leading provider of payments infrastructure in the cannabis industry, secured a non-brokered private placement of 5.86 million units of the company, at a premium to market subscription price of CA$0.80 per unit, for aggregate gross proceeds of approximately CA$4.7 million ($3.63 million).

Pursuant to the offering, 4.5 million units will be issued to existing investors of the company who will, concurrently with the closing of the offering, exercise 600,063 previously issued common share purchase warrants for additional gross proceeds to the company of CA$200,000. The offering is expected to close imminently.

Each unit consists of one common share of the company and three-quarters (3/4) of one common share purchase warrant. each warrant comprising units issued to existing investors will be exercisable at CA$1.00 and each warrant comprising units issued to all other investors will be exercisable at CA$1.05. Each warrant will entitle the holder thereof to acquire one common share for a period of 3 years from the date of issuance, subject to acceleration in the event the common shares trade on the Canadian Securities Exchange at or above CA$1.50 for a period of 20 consecutive trading days.

“The completion of this financing will strengthen our balance sheet and reflects our strong position in the market,” stated Ryan Hamlin, CEO and co-founder of POSaBIT. “A majority of the funding is from existing institutional investors that understand the growth prospects and trajectory of the company. These investors have made a strong commitment to management and believe that we will continue to execute on our plan. The placement terms demonstrate the investor group’s commitment to supporting the company, minimizing current shareholder dilution, and ultimately driving share price appreciation of our stock. Moreover, we have raised less than $10 million since inception prior to this offering, which underscores POSaBIT’s capital efficiency and ability to largely self-fund growth. The capital raised in this placement will help support our eight state launch that we aim to complete by year end. At a time when our competitors are pulling back and reducing headcount, we are marching forward. We continue to engage with large multi-state operators and reaffirm our 2022 revenue guidance of $37 to $40 million.”

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