With cash-based businesses under increasing pressure from both a safety, insurance and regulatory perspective, POSaBIT solution increases average size of basket while reducing risk.
While the cannabis industry continues to struggle with cash-based or alternative – and often risky – payment options, POSaBIT, the premier cannabis point of sale and payment platform, continues to champion the industry-leading POSaBIT payments platform. Leveraging the compliant and highly resilient PIN debit system, POSaBIT payments take the risk out of other, less reliable industry payment platforms like point of banking, clunky ACH or expensive third-party ATMs.
Cashless ATM solutions (also known as point of banking), once seen as the digital solution to cannabis’ cash problem, were blocked from accessing traditional ATM networks in early December. POSaBIT has successfully worked to move most of its customers to PIN debit, accelerating the shift to more reliable and compliant PIN debit in recent months. Unfortunately, many payment providers in the cannabis industry continued to rely on cashless ATM as it became increasingly clear that it was a risk to retailers. As a result, the December shut down left many retailers without a safe alternative to cash. For those retailers struggling with cashless ATM, POSaBIT has offered a rapid and low-cost conversion to PIN debit. POSaBIT PIN Debit is available to all POSaBIT customers in the United States.
“As we’ve seen in many of the states where we operate, safety is a major concern for our heavily cash-based industry. By reducing reliance on cash, we not only improve safety, but we increase average basket size and allow budtenders to do what they do best – help customers to choose the best product to meet their needs, regardless of the amount of cash they brought into the store,” said POSaBIT VP of Product Christine Foss. “Our laser focus on cannabis retailers means we can address those issues in a way that helps to normalize the cannabis experience for our customers and their customers.”
For retailers, POSaBIT works seamlessly with their existing infrastructure to enable PIN debit that just works. The open infrastructure underpinning POSaBIT means retailers aren’t locked into a single solution, but can pick and choose their favorite point of sale, loyalty, delivery, or other system and integrate it easily into the POSaBIT platform. POSaBIT point of sale makes the integration even easier while retaining the open architecture and highly secure, compliant platform for which POSaBIT is known.
End users love the ease of using the POSaBIT platform, which mimics many of their everyday retail experiences. While many cannabis customers have come to expect the ATM fees and careful budgeting with cash, the POSaBIT platform empowers budtenders with recommendations and customer insights and ensures that the customer experiences a seamless, cashless, friendly retail environment.
POSaBIT (CSE: PBIT) is a FinTech, working exclusively within the cannabis industry. We provide a best-in-class Point-of-Sale solution and are the leading cashless payment provider for cannabis retailers. We work tirelessly to build better financial services and transaction methods for merchants. We bring cutting edge software and technology to the cannabis industry so that all merchants can have a safe and compliant set of services to solve the problems of a cash-only industry. For additional information, visit www.posabit.com .
The Company is raising the high end of its gross profit guidance to $10.5 million and reiterating its revenue guidance of $37.0 – $40.0 million for the full year 2022.
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Full details of the financial and operating results are described in the Company’s consolidated financial statements with accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR at www.sedar.com .
Adjusted EBITDA is a non-IFRS measures used by management that does not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments. The Company believes this non-IFRS measure is a useful metric to evaluate its core operating performance and uses this measure to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use this non-IFRS measure in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.
This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.
Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. POSaBIT is an early stage company with a short operating history; it may not achieve profitability; and it may not actually achieve its plans, projections, or expectations.
Important factors that could cause actual results to differ materially from POSaBIT’s expectations include consumer sentiment towards POSaBIT’s products and blockchain/cryptocurrency exchange technology generally, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations.
Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the Company’s forecasted revenue, transaction sales for card services and gross profit for the 12 months to be ended December 31, 2022 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward-Looking Statements” herein. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward-Looking Statements” herein, it should not be relied on as necessarily indicative of future results.
POSaBIT (CSE: PBIT) is a financial technology company that delivers unique and innovative, blockchain-enabled payment processing and point-of-sale systems for cash-only businesses. POSaBIT specializes in resolving pain points for complex, high-risk, emerging industries like cannabis with an all-in-one solution that is compliant, user-friendly and utilizes top-of-the-line hardware. POSaBIT’s unique solution provides a safer and transparent environment for merchants while creating a better overall experience for the consumer. For additional information, visit: www.posabit.com .
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Co-founder and CEO of POSaBIT