2023-04-03 11:57:23 ET
- POSaBIT Systems ( OTCQX:POSAF ) acquired certain assets from Hypur, effective Apr.1, 2023, in a cash and equity transaction valued at up to $7.5M, implying a purchase price multiple of 1.4x 2022 revenue.
- The acquired assets generated ~$5.3M in revenue and $1.3M in gross profit during the 12 months ended Dec. 31, 2022.
- It adds 150+ active merchant locations, generating $100M+ of annualized payment Gross Merchandise Value (GMV) and a strong pipeline including 60+ merchant locations expected to go live in the next 90 days.
- Hypur is a provider of compliant, sustainable payment and bank compliance solutions for high-risk industries, including cannabis businesses.
- As consideration for the acquisition, POSaBIT issued an 6.2M common shares in the capital of POSaBIT and $1.5M in cash; cash was funded by the earlier announced debt facility.
- Post achievement of certain milestones, POSaBIT will pay up to an additional 1.2M shares.
- Concurrent with closing, POSaBIT entered into its earlier announced credit agreement with Perga Capital Partners in connection with an up to $8M unsecured credit facility with an initial 3-year term, at an initial interest rate of 10% annually for the first two years and a final interest rate of 12% annually for the last year.
- The company expects to report financial results on Apr.26, 2023.
For further details see:
POSaBIT Systems acquires Hypur for $7.5M, to add $100M in annualized payment GMV