POSaBIT Amends Terms of Outstanding Loan with Perga Capital Partners

Agreement accelerates repayment of a portion of principal while extending the maturity of the remaining balance and reducing the interest rate

TORONTO & SEATTLE--(BUSINESS WIRE)-- POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (“POSaBIT” or the “Company”), a leading payments and point-of-sale technology provider for the cannabis industry, today announced that it has entered into an amended loan agreement with Perga Capital Partners LP (“Perga”), refinancing the Company's outstanding $4.75 million loan.

Under the amending agreement, POSaBIT will repay $2 million of principal over the next 18 months. In connection with that accelerated principal repayment, the maturity of the remaining loan balance will be extended from March 31, 2028 to March 31, 2030. Following March 31, 2028, the remaining balance will be repaid through monthly principal and interest payments over the 24 months ending March 31, 2030. The interest rate will also be reduced from 12% to 10% initially and to 9% beginning January 1, 2027 through maturity.

“This agreement allows us to meaningfully reduce our outstanding debt while lowering the cost of the remaining loan and extending its repayment period,” said Ryan Hamlin, Co-Founder and CEO of POSaBIT. “It provides us a clear path to manage the obligation while preserving greater financial flexibility as we continue to focus on profitable growth.”

POSaBIT expects the combination of the scheduled principal reduction, lower interest rate and extended maturity to improve the Company's debt profile and reduce the ongoing cost of the loan. The Company also retains the flexibility to make additional principal payments ahead of schedule.

The amending agreement with Perga, which is a related party (within the meaning of Multilateral Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101")), is a “related party transaction” for the purposes of MI 61-101. The amending agreement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to Sections 5.5(b) and 5.7(1)(f) of MI 61-101, respectively. The terms of the amending agreement were not finalized until the execution thereof. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party transaction contemplated hereby pursuant to a material change report filed at least 21 days prior to the completion of the amendment.

About POSaBIT

POSaBIT (CSE: PBIT, OTC: POSAF) 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, AI driven 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 more information, visit www.posabit.com.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements regarding the terms and expected benefits of the amended loan agreement with Perga, the Company's plans to make the scheduled principal prepayments (including the size of the third prepayment which is contingent on the receipt of a tax refund), the anticipated commencement of monthly amortization payments in April 2028, anticipated interest savings from the reduced interest rates, and the Company's future financial position. 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,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” or similar expressions suggesting future outcomes, or the negative thereof. Forward-looking statements are based on the Company's current expectations and assumptions and are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated, including risks related to the Company's ability to generate sufficient cash flow to fund the planned principal prepayments and monthly amortization payments, general business and economic conditions, competitive pressures, regulatory uncertainty in the cannabis industry, and other risks described from time to time in the Company's filings with securities regulators. Readers are cautioned not to place undue reliance on forward-looking statements, and the Company undertakes no obligation to update any forward-looking statement except as required by law.

Neither the Canadian Securities Exchange nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260902340208/en/

Investor Relations: [email protected]
Media Relations: Oscar Dahl, 855-767-2248, [email protected]
Management: Ryan Hamlin, Founder and CEO, 855-767-2248, [email protected]

Source: POSaBIT Systems Corporation

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