POSaBIT Signs Software License Agreement With Cannabis Technology Provider

POSaBIT Systems Company POSAF sign a software license agreement on August 22, 2022 under which POSaBIT granted a non-exclusive worldwide license to a major cannabis technology partner to market the vscompany point of sale technology.

Under the terms of the license agreement, the licensee paid the company a $500,000 one-time fee. In addition, in return for the license, the holder will have to pay to the company $20 million guaranteed for more than four years. The Fee will be a monthly fee paid per point-of-sale device deployed by Licensee or its Affiliates during the applicable month, subject to a minimum monthly fee payment of between $325,000 and $512,500 for first four years of term. In accordance with the license agreement, the licensee has prepaid the aggregate minimum royalties for the first year of the term, which are equal to $3.9 million.

Licensee shall have the right, exercisable at any time after the third anniversary of the License Agreement, to redeem its royalty payment obligations by paying the Company an amount equal to the greater of $30.75 million and five times the royalty payments payable by the licensee during the last twelve calendar months. The Company has also granted the Licensee a right of first refusal with respect to any exclusive license or sale to a third party of the Licensed Property. The License Agreement may be terminated by Licensee upon 180 days notice, provided that notice cannot be given within the first four years of the License Agreement term.

Photo by Giorgio Trovato on Unsplash

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