Marijuana fintech company POSaBit to move to TSXV, raises funds to pay debt

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Marijuana payment technology company POSaBit Systems Corp. has applied to list its shares on the TSX Venture Exchange, moving away from the Canadian Securities Exchange.

CEO Ryan Hamlin described the Bellevue, Washington-headquartered company’s planned move to the TSXV as “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.”

“I am excited at the possibility of facilitating ownership and improving trading liquidity, in addition to potential index and ETF inclusion,” Hamlin said in a Dec. 22 statement.

POSaBit intends to delist from the Canadian Securities Exchange (CSE) if the TSXV listing is successful, the company’s marketing director, Jesse Swingle, confirmed to MJBizDaily.

Separately, POSaBit announced on Dec. 29 that it had closed a non-brokered offering of units for gross proceeds of 870,000 Canadian dollars (roughly $650,000) to fund a debt repayment.

Each unit includes one common share and 0.88 of a share purchase warrant, exercisable to buy one common share at CA$0.40 for five years.

The capital was raised to repay convertible notes due at the end of 2023.

POSaBit said the 12% unsecured convertible notes, originally issued in November 2020, had a principal amount of $1.04 million.

However, $565,000 worth of the notes were not converted and, as a result, matured Dec. 31.

Related to the offering, Perga Capital Partners bought 2,857,929 POSaBit units for proceeds of about CA$800,000.

Perga simultaneously agreed to cancel 3.85 million common share purchase warrants.

POSaBit said it will issue roughly 3.1 million shares and 2.7 million warrants, “which will be partially offset by the cancellation of 3.85 million warrants previously issued to Perga.”

The company said it would have had to issue roughly “approximately 6.3 million common shares if the 2020 notes had converted under their original terms.”

Shares of POSaBit trade as PBIT on the CSE and POSAF on the U.S. over-the-counter markets.