Mr. Ryan Hamlin reports

POSABIT ANNOUNCES ANTICIPATED LATE FILING OF THE FIRST QUARTER INTERIM FILINGS

Posabit Systems Corp. is anticipating a delay in filing its interim financial statements, and accompanying management's discussion and analysis, for the three months ended March 31, 2024 (the Q1 interim filings), by the filing deadline on May 30, 2024, as required by National Instrument 51-102 -- Continuous Disclosure Obligations.

The reason for the anticipated delay of the filing of the Q1 interim filings is because the company's late filing of its annual financials did not allow sufficient time for completion of Q1 interim filings by the filing deadline. The applicant anticipates being able to file the Q1 interim filings on or before June 13, 2024.

Accordingly, the company has applied for, and expects to receive, a voluntary management cease trade order (MCTO) from the British Columbia Securities Commission. The MCTO will stay in effect until the Q1 interim filings are filed. The issuance of the MCTO will, at a minimum, prohibit the chief executive officer and chief financial officer of the company to trade in the company's securities for so long as the Q1 interim filings are not filed. The MCTO, if issued, does not affect the ability of shareholders who are not insiders of the company to trade their securities of the company. The MCTO will be in effect until the default is remedied.

The company will comply with the alternative information guidelines set out in National Policy 12-203 -- Management Cease Trade Order, until the Q1 interim filings have been completed. The guidelines, among other things, require the company to issue biweekly default status reports, by way of a news release, so long as the Q1 interim filings have not been filed, and these will also be filed on SEDAR+.

About Posabit Systems Corp.

Posabit is a fintech, working exclusively within the cannabis industry. It provides a best-in-class point-of-sale solution and is the leading cashless payment provider for cannabis retailers. The company works tirelessly to build better financial services and transaction methods for merchants. It brings 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.

We seek Safe Harbor.