Mr. Ryan Hamlin reports

POSABIT REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS

Posabit Systems Corp. has released its financial results for the first quarter ended March 31, 2026.

"Posabit entered 2026 with strong momentum and Q1 reflected the continued execution of our long-term strategy," said Ryan Hamlin, chief executive officer and co-founder of Posabit. "We once again had a profitable quarter, with approximately $1-million in adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] and a significant increase of cash on hand. Our gross profit was up 29 per cent over Q1 of 2025. The business is operating at a high level, our new brand software platform continues to gain traction in the market, and we are excited about the remainder of 2026."

The company also highlighted continued progress around cannabis rescheduling efforts, specifically the reclassification of medical cannabis as a Schedule 3 drug in the United States, which management believes could create significant long-term opportunities for Posabit and the broader cannabis industry.

"The recent momentum around cannabis rescheduling continues to be very encouraging," said Mr. Hamlin. "Recent federal actions related to state-licensed medical cannabis, along with additional procedural hearings expected next month regarding recreational rescheduling efforts, are important developments for the industry. We continue to believe the regulatory environment is moving in a positive direction and could ultimately create meaningful opportunities for cannabis operators, technology providers and financial services companies like Posabit."

Mr. Hamlin added: "Perhaps, most importantly, industry conversations around the future potential for broader credit card processing capabilities continue to become increasingly optimistic. While there is still work to be done on the regulatory side, we believe the long-term direction is very positive. If traditional credit card acceptance eventually becomes available to the cannabis industry, it would be a true game changer for both retailers and companies like Posabit."

Mr. Hamlin concluded: "Posabit remains focused on disciplined execution, long-term profitability and strategic growth opportunities. We believe the cannabis industry is continuing to mature and evolve, and Posabit is exceptionally well positioned for the future."

Balance sheet

As of March 31, 2026, the company had cash and cash equivalents of approximately $2.5-million, compared with $1.76-million as of Dec. 31, 2025. This represents a 42-per-cent increase for the period.

Conference call information

This call has been rescheduled from May 27 to May 29. The company apologizes for any inconvenience.

Date:  May 29, 2026

Time:  4:30 p.m. Eastern Time

Toll-free:  888-506-0062

International:  973-528-0011

Participant access code:  624647

Conference call replay information

The replay will be available approximately one hour after the completion of the live event.

Toll-free:  877-481-4010

International:  919-882-2331

Replay passcode:  54067

Financial reports

Full details of the financial and operating results are described in the company's consolidated financial statements for the quarter ended March 31, 2026, together with the accompanying notes. The consolidated financial statements and additional information about Posabit are available on the company's website or on SEDAR+.

About Posabit

Posabit is a fintech, working exclusively within the cannabis industry. The company provides a best-in-class point-of-sale solution and works with payment processors to enable cashless payment options for cannabis retailers. Posabit works tirelessly to build better financial services and transaction methods for merchants. The company brings cutting-edge, AI-driven (artificial intelligence) 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.

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