Texas-based D&P Holdings Reinforces Commitment to Invest Up to USD $10 million in PowerBand As Needed
VANCOUVER, BC / ACCESSWIRE / May 7, 2020 / PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) ("PowerBand", "PBX" or the "Company") is pleased to announce it has secured a further USD $600,000 from Texas-based D&P Holdings, Inc. ("D&P").
The Company has made a strategic decision not to draw down further funds at this time from D&P, which has committed up to USD $10 million, because it has sufficient operational funds. The Company is on target for commercialization of its virtual-transaction platform that allows consumers and automotive dealers to buy, sell, lease, trade and finance vehicles from any location, using their smart phones or other digital devices.
"PowerBand's mission is well-capitalized and on track to deliver the automotive industry a virtual-transaction platform that will allow the remote acquisition and sale of vehicles," said PowerBand CEO Kelly Jennings. "Our virtual auctions, launched in April, are growing in popularity and we are now in advanced negotiations to acquire extensive institutional credit lines that will be made available to consumers and dealers on the PowerBand platform. For this reason we have decided we have no current need to draw down additional debt."
The most recent capital injection is part of D&P's ongoing commitment to invest up to USD $10 million in PowerBand Solutions US Inc. ("PowerBand US"), a wholly-owned subsidiary of the Company, and its cloud-based, transaction platform that enables consumers and dealers to buy, sell, lease and finance vehicles from smart phones and other devices, from any location, as easily as they now purchase a product on Amazon.
"We remain unwavering in our commitment to invest at least USD $10 million into PowerBand US," said D&P's CEO John Armstrong. "We are confident PowerBand's virtual-transaction platform will greatly assist the automotive industry in recovering from the COVID-19 pandemic by empowering consumers and dealers to buy, sell, lease and trade cars and trucks from any remote location."
D&P, which works directly with more than 850 dealerships in all 50 states, is one of the United States' largest administrators of automotive warranty and insurance products. To date, it has completed USD $3.3 million of its USD $10 million investment into PowerBand US, which will be available as needed. It has also exercised an option to invest an additional USD $2.5 million into PowerBand's Canadian leasing division.
PowerBand is advancing ongoing negotiations to secure extensive credit facilities that will be available on its cloud-based transaction platform for consumers and dealers. "We anticipate beginning loan originations in the near future," said Jennings.
PowerBand's platform will benefit key stakeholders in the automotive retail sector, including funders, OEMs and rental companies, by removing unnecessary third parties and their fees from sales transactions.
About PowerBand Solutions Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric- and non-electric vehicles, on smart phones or any other online digital devices, from any location. PowerBand's transaction platform - being trademarked under DRIVRZ - is being made available across North American and global markets.
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Richard Goldman, VP Corporate Development
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SOURCE: PowerBand Solutions Inc.