POSaBIT to Acquire MJ Platform, Leaf Data Systems and Ample Organics for US$4 Million Adding 350+ Merchants and More than US$2 Billion in GMV

POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (the “Company” or “POSaBIT”), a leading provider of payments infrastructure in the cannabis industry, today announced it has signed a definitive agreement to acquire MJ Platform, Leaf Data Systems and Ample Organics (collectively, the “Acquired Companies”) from Akerna Corp. (Nasdaq: KERN) for US$4 million in an all-cash transaction (the “Acquisition”).

Strategic Rationale

• The Acquired Companies are expected to generate approximately US$11.0 million in revenue and US$6.8 million in gross profit during the 12 months ended December 31, 2022 on a standalone basis¹
• Nearly doubles the number of merchant locations POSaBIT serves
• Significantly expands payments pipeline with the addition of 350+ merchant locations generating approximately US$2.0 billion of annual Gross Merchandise Value (“GMV”)²
• Adds new revenue stream from state ‘seed-to-sale’ compliance contracts with the states of Pennsylvania and Utah
• Establishes POSaBIT as a leading, vertically integrated solutions provider with the addition of cultivation, manufacturing and distribution capabilities
• Expands POSaBIT’s operations into Canada with the addition of Ample Organics
• Adds experienced industry professionals

“At a purchase price of 0.4 times 2022 estimated revenue, we are acquiring high-quality software assets at an attractive valuation,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “This acquisition will increase merchant locations that we serve to nearly 900 and create a meaningful opportunity to accelerate adoption of our fully compliant PIN debit payments solution, an important driver of future revenue growth and sustainable positive EBITDA. Importantly, this transaction launches us to the top five POS providers in terms of market share and GMV. It adds valuable assets that align directly with our stated goals of adding new merchants, increasing digital payment penetration and introducing new offerings to better serve our merchants. We see a significant opportunity to further monetize the assets we are acquiring while addressing key pain points for our merchant partners and their customers.”