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by Stockwatch Business Reporter
The TSX Venture Exchange closed up 7.49 points to 578.49 Thursday. Toby Pierce's fourth capital pool shell, Foreshore Exploration Partners Corp. (FORE: halted), has filed a prospectus for its qualifying transaction, which is the acquisition of Posabit Inc., a payment processing company in Seattle. The shell, which has 3.2 million shares issued, will issue 68,699,727 shares to its target's shareholders and creditor (one holder of a $50,000 (U.S.) note will receive 549,804 shares).
Posabit offers its point-of-sale system to the usual restaurants and retailers, as well as food trucks and festival organizers. Its main customers, however, are marijuana dispensaries. Posabit's goal is to solve the dilemma in which U.S. consumers are unable to use their debit or credit cards to buy marijuana, since marijuana remains an illegal substance under U.S. federal law. Posabit's point-of-sale system enables consumers to use their debit or credit cards to buy cryptocurrencies (specifically bitcoins or litecoins) and then use those cryptocurrencies to buy marijuana. It is unclear how many consumers and dispensaries find this process simpler or cheaper than just using cash. Posabit charges consumers a "convenience fee" ranging from $2 (U.S.) to $4.50 (U.S.) per transaction. It also charges merchants a fee ranging from 1.5 per cent to 5 per cent per transaction. The merchant must also pay a separate "swipe fee" of 25 U.S. cents to 35 U.S. cents per transaction. Yet another expense for merchants is the one-time hardware and installation fee, and there is also the monthly subscription fee ranging from $29 (U.S.) to $250 (U.S.) based on the volume of transactions.
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