VANCOUVER, BC / ACCESSWIRE / May 7, 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 its wholly-owned subsidiary, PowerBand Global Dealer Services Inc., has been granted an Exporter Dealership licence from the Ontario Motor Vehicle Industry Council ("OMVIC").
We are excited to announce receipt of our vehicle exporter licence from OMVIC. PowerBand will leverage its dealer network in Ontario to begin acquiring in-demand used vehicles for export to the United States. We will work closely with our D2D Auto Auction joint venture to sell vehicles to over 2,500 dealers across the United States. This is the first phase of moving the North-South used vehicle market onto PowerBand's digital inter-dealer platform. With an industry estimated 400,000 used vehicles to be exported to the U.S. in 2019(1) with an average wholesale price of approximately USD$25,000, it represents a market opportunity of USD$10 billion per year. Based on PowerBand's internal projections, we will export over 400 vehicles in 2019, with the projected volume increasing over the next 24 months as the Company expands its floorplan and credit facilities. The Company projects 2019 gross revenue from the sale of exported vehicles to reach USD$10 million with net income of USD$1.0 million. We have identified over 5,000 vehicles per month from dealer partners in Canada to supply D2D and other buyer partnerships as demand increases over the next 24 months. Phase 2 will focus on increasing supply from Canada and the U.S. to sell 10,000 vehicles per month in the United States by the end of 2021.
Mike Moen, President and COO of PowerBand commented: "We are very pleased to have received our OMVIC Exporter Licence and we will immediately begin to implement our strategy of buying Canadian used vehicles and selling them through to the 2,500 dealerships in D2D's network and to PowerBand's other U.S. partners."
- 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:
CONTACT:
Richard Goldman, VP Corporate Development
P: 1-866-768-7653
[email protected]
FORWARD-LOOKING STATEMENTS
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SOURCE: PowerBand Solutions Inc.