Mr. Ryan Hamlin reports

POSABIT SECURES ~CAD$5 MILLION PRIVATE PLACEMENT LED BY EXISTING INSTITUTIONAL INVESTORS, PRICED AT A PREMIUM TO MARKET; NEW FUNDING SUPPORTS LAUNCH INTO 8 STATES BY YEAR END

Posabit Systems Corp. has arranged a non-brokered private placement of 5,861,941 units of the company, at a premium to market subscription price of 80 cents per unit, for aggregate gross proceeds of approximately $4.7-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 (as defined herein) purchase warrants for additional gross proceeds to the company of $200,000. The offering is expected to close imminently.

Each unit consists of one common share of the company and three-quarters of one common share purchase warrant. Each warrant comprising units issued to existing investors will be exercisable at $1 and each warrant comprising units issued to all other investors will be exercisable at $1.05. Each warrant will entitle the holder thereof to acquire one common share for a period of three years from the date of issuance, subject to acceleration in the event the common shares trade on the Canadian Securities Exchange at or above $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," said Ryan Hamlin, chief executive officer 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 (U.S.) 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 multistate operators and reaffirm our 2022 revenue guidance of $37-million (U.S.) to $40-million (U.S.)."

About Posabit Systems Corp.

Posabit is a financial technology company that delivers unique and innovative 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.

We seek Safe Harbor.