PowerBand Applies for Exporter Dealership License
Thursday, April 4, 2019 9:15 AM
VANCOUVER, BC / ACCESSWIRE / April 4, 2019 / PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (Frankfurt: 1ZVA) ("PowerBand", "PBX" or the "Company"), a leading online automotive auction, remarketing and sales platform in North America, is pleased to announce that through its wholly-owned subsidiary, PowerBand Global Dealer Services Inc., it has applied to the Ontario Motor Vehicle Industry Council ("OMVIC") for an Exporter Dealership license.
Over the past few years there has been tremendous demand for Canadian used vehicles in the United States, owing to prevailing foreign exchange rates, particularly the relative strength of the $USD to the $CAD. According to industry sources 310,000 used vehicles were exported to the U.S. in 2017, with over 360,000 vehicles in 2018, and projections trending to 400,000 vehicles in 2019 (1). With average selling retail prices of approximately USD$25,000, this represents a market segment opportunity of USD$10 billion per year.
PowerBand is uniquely positioned to capitalize on this opportunity. In the second quarter of 2019, PowerBand plans to implement a strategy to leverage its vast network of commercial customers and dealers across Canada and the market intelligence data from its own auction network to buy in-demand Canadian used vehicles, initially in Ontario, export them to the U.S., and sell them through its distribution channels in the U.S. It is anticipated that many of these export vehicles will be transacted through the recently launched D2D Auto Auction ("D2D") online platform, which is PowerBand's 50/50 partnership with Bryan Hunt, of J.B. Hunt Transport, Inc.
PowerBand is currently in negotiations with NextGear Capital, Inc., a division of Cox Automotive, for line of credit financing to support the acquisition and export of approximately 100 used vehicles per month. PowerBand will look to expand its credit facilities over time as the projected volume of exported vehicles increases.
Mike Moen, President and COO of PowerBand commented: "Given our strong network of dealers and commercial vehicle suppliers in Canada, our newly launched partnership in the U.S. with D2D Auto Auctions, and our strategic partnerships with automotive software-related companies with over 10,000 dealership clients across North America, PowerBand is in a position of tremendous advantage to benefit from the strong cross-border used vehicle export market."
(1) - Canadian used vehicle export figures from Canadian Black Book and DesRosiers Automotive Consultants.
About PowerBand Solutions Inc.
PowerBand Solutions Inc. is a technology provider listed on the TSX Venture Exchange that is developing solutions for automotive and other industries that drive efficiency and transparency in the marketplace. PowerBand has developed and commercialized a leading-edge online auction platform that increases revenues and profit margins for its automotive dealership, Original Equipment Manufacturer, commercial fleet and rental company customers. PowerBand's remarketing platform, the PowerBand Exchange, incorporates the industry's latest auction technologies, inventory management, market intelligence, and appraisal processes.
For further information, please contact:
Carolyn Capaccio, Jody Burfening, LHA Investor Relations
Richard Goldman, VP Corporate Development, PowerBand
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SOURCE: PowerBand Solutions Inc.