Cannabis Fintech Co. Seeks TSXV Listing As POSaBIT CEO Highlights Potential Benefits

POSaBIT Systems Corporation PBIT POSAF has filed its application to list the company’s common shares on the TSX Venture Exchange.

Ryan Hamlin, the company's CEO and co-founder, praised the move.

 "This is the natural continuation of our plan and commitment to our shareholders to expose POSaBIT to a larger market of investors in the US, Canada and abroad," Hamlin said. "I am excited at the possibility of facilitating ownership and improving trading liquidity, in addition to potential index and ETF inclusion.”

The listing of the common shares on the TSXV remains subject to the review of the TSXV and is contingent on the satisfaction of all listing and regulatory requirements.

The news comes on the heels of the company's announcement that it intends to complete a non-brokered private placement of up to 3,107,142 of its units at $0.28 per unit, for aggregate gross proceeds of roughly CA$870,000 ($652,654) to fund the repayment of certain convertible promissory notes at maturity.

See also: POSaBIT Systems Reports Financial Performance In Q3 2023, Shows Resilience In Cannabis Payment Industry

Non-Brokered Unit Offering to Fund Convertible Unsecured Note Maturity

In connection with the offering, each unit will be comprised of one common share and 0.88 common share purchase warrants, with each warrant being exercisable into one common share in the capital of the company at CA$0.40 per warrant share for 60 months.

On Nov. 13, 2020, POSaBIT announced the close of $1,040,000 principal amount of 12% convertible unsecured notes due Dec. 31, 2023, convertible into common shares at a conversion price of CA$0.12 per common share. As of the conversion deadline, the $565,000 principal amount of 2020 notes did not convert and such notes will be repaid at maturity.

In connection with the offering, Perga Capital Partners LP has entered into a subscription agreement with the company, under which Perga has committed to purchase 2,857,929 units under the offering, for aggregate gross proceeds of approximately CA$800,220.

Perga has also entered into a warrant cancellation agreement with the company, under which Perga has agreed to cancel 3.85 million common share purchase warrants previously issued to Perga.

Under the offering, the company intends to issue approximately 3.1 million common shares and approximately 2.7 million warrants, which will be partially offset by the cancellation of 3.85 million warrants previously issued to Perga.

This compares to the potential issuance of approximately 6.3 million common shares if the 2020 notes were converted under their original terms.

The offering is expected to close on or about Dec. 29, 2023.

Now read: POSaBIT Acquires This Company To Become One-Stop Shop For All Payment And Bank Compliance Needs For Cannabis Dispensaries

POSAF Price Action

POSaBIT's shares traded 4.7619% lower at $0.2 per share after the market close on Thursday afternoon.

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