POSaBIT Applauds Today’s Executive Order to Reschedule Cannabis as a Pivotal Step Forward for the Industry

Move to Schedule III Expected to Bring in More Investment Interest and Capital to Publicly-Traded Companies Like POSaBIT

TORONTO & SEATTLE--(BUSINESS WIRE)--POSaBIT (CSE: PBIT, OTC: POSAF), a leading provider of point-of-sale and payments infrastructure for the cannabis industry, today expressed strong support for the federal government’s decision to reschedule cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act. The change marks one of the most significant federal cannabis policy shifts in decades and represents a major inflection point for licensed cannabis operators nationwide.

Rescheduling to Schedule III would eliminate the application of IRS tax code 280E to state-legal cannabis businesses, allowing dispensaries to deduct ordinary business expenses for the first time. The removal of 280E is expected to dramatically improve profitability, free up cash flow, and create new opportunities for reinvestment across the industry.

“This is a watershed moment for cannabis businesses like POSaBIT,” said Ryan Hamlin, Co-Founder and CEO of POSaBIT. “Rescheduling addresses one of the most destructive and outdated aspects of federal cannabis policy. The elimination of 280E alone will materially improve the financial health of our dispensary partners and the broader cannabis industry.”

Beyond tax relief, POSaBIT believes the move to Schedule III has the potential to unlock broader financial services access for cannabis operators. For years, payment processing and banking limitations have forced dispensaries to rely on workarounds that increase operational complexity and risk. Rescheduling could prompt credit card networks, issuing banks, and payment processors to reassess their rules and risk frameworks related to cannabis transactions.

“We are hopeful this action encourages financial institutions to modernize their approach to cannabis,” Hamlin added. “Greater clarity at the federal level should lead to more normalized payment acceptance, including expanded access to card-based solutions. That would be a meaningful win for consumers, operators, and POSaBIT, significantly increasing our company’s revenue potential and profit.”

POSaBIT emphasized that while rescheduling is not full legalization, it represents a critical step toward a more rational, consistent federal framework for cannabis—one that better reflects the reality of legal markets operating successfully across the majority of U.S. states.

As a long-time advocate for compliant, technology-driven solutions in cannabis retail, POSaBIT remains committed to supporting its merchant partners through regulatory change. The company will continue investing in secure, scalable payment and point-of-sale solutions designed to help dispensaries operate more efficiently as the industry enters its next phase of growth.

About POSaBIT

POSaBIT is a leading provider of payments infrastructure and point-of-sale technology built specifically for the cannabis industry. Trusted by dispensaries across the United States, POSaBIT delivers compliant, user-friendly solutions that simplify transactions, improve the customer experience, and help cannabis retailers scale with confidence. For more information, visit www.posabit.com.