On Wednesday, POSaBIT announced that it expects to secure an approximate $3.75 million through a private placement.
POSaBIT plans to sell nearly 6,000 shares of stock with the majority going to existing investors, the company said in a statement.
“The capital raised in this placement will help support our eight-state launch that we aim to complete by the end of the year. 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 [million] to $40 million,” Ryan Hamlin, CEO and co-founder of POSaBIT, said in a statement.
Based in Kirkland, POSaBIT was founded in 2015 and raised $9.6 million in venture funding before going public on the Canadian Securities Exchange in 2019.
POSaBIT creates digital payment systems along with point-of-sale hardware that is supposed to facilitate cash-only businesses.
While cannabis is legal in several U.S. states, many financial institutions are still unwilling to process transactions from dispensaries. This has resulted in many companies not allowing cannabis transactions to take place on their credit cards. In order to still sell their goods, dispensaries accept only cash, which makes POSaBIT’s solutions perfectly suited for the industry.
POSaBIT’s platform and hardware help process debit payments in cannabis dispensaries by conducting debit payments as ATM transactions. The platform can also facilitate loyalty rewards systems that are offered to customers. It can also manage sales reports and conduct SMS marketing.
