TORONTO, ON (July 17, 2024) – PowerBand Solutions Inc. (TSXV:PBX) (OTC Pink:PWWBF) (Frankfurt:1ZVA) (“PowerBand“, “PBX” or the “Company“), a comprehensive trading and financing technology platform transforming the online experience to sell, trade, lease, and finance vehicles, provides the following update on corporate activities.
Jeff A. Morgan, the founder and CEO of MUSA Auto Finance, which the Company initially acquired an interest in 2019, returned to PowerBand as CEO three months ago and immediately set out to re-establish the Company as a leader in the used vehicle leasing industry in the United States.
Last month PowerBand completed an oversubscribed private placement financing for CAD $2.2 million with several existing and new strategic investors, including a significant investment made by the Company’s new CEO.
On the progress that has recently been made, Jeff Morgan commented: “My first priority upon my return to PowerBand was to address several legacy corporate and legal matters that were hindering the Company from moving forward. I am pleased to report that the team has been successful in addressing the major issues that I had initially informed the new investors would take 4 to 6 months to rectify. They have now been resolved ahead of schedule.
I have been in constant discussions with the credit union that has historically provided the majority of the Company’s funding lines. I am pleased to report that in addition to PowerBand continuing to provide the servicing for the lease portfolio, the Company and the credit union have also agreed to a new Remarketing Strategy, now under contract, whereby we will assist the credit union to maximize their return from vehicles that are coming off lease. This new Remarketing Strategy is the first of its kind that I am aware of. PowerBand will now complete the infrastructure needed to increase revenue by extending this program to other banks, credit unions, and lending partners.
We now are turning our focus from the past and looking where it needs to be, our future. This allows the team to work on some exciting initiatives to generate additional revenue and to innovate our business model. I am looking forward to advancing those opportunities to a point where I can share them publicly with all shareholders soon.”
About PowerBand Solutions Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange, OTC Pink, and Frankfurt markets, is a fintech provider disrupting the automotive industry. PowerBand’s integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, and funders PowerBand’s transaction platform is being made available across the United States of America.
For further information, please visit the PowerBand website or contact:
Jeff A. Morgan
Chief Executive Officer and Director
E: [email protected]
P: 1-866-768-7653
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
Certain information included herein is forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results (including those in the area of risk management), economic or market conditions, and the outlook of or involving PowerBand, its subsidiaries and its businesses. Such information is typically identified by words such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, “plan”, “forecast”, “future”, “outlook, “guidance”, “may”, “project”, “should”, “strategy”, “target”, “will” or similar expressions suggesting future outcomes.
Forward-looking information is provided for the purpose of providing information about management’s expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions and expectations that PowerBand believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Those assumptions and expectations are based on information currently available to PowerBand, including information obtained from third party industry analysts and other third-party sources, and the historic performance of PowerBand’s businesses. Such assumptions include the timing of receipt of necessary regulatory approvals, anticipated financial performance, current business and economic trends, the amount and timing of future dividends paid by PowerBand, business prospects, utilization of tax basis, regulatory developments, currency, exchange and interest rates, commodity prices relating to the automotive industry, , trading data, cost estimates, our ability to obtain financing on acceptable terms, and statements regarding net working capital, anticipated operational and capital expenditure reductions, the length and impact of COVID-19 on PowerBand’s businesses and customers and capital expenditure requirements of PowerBand, the assumptions set forth under the “Financial Outlook” sections of our MD&A. The forward-looking information is also subject to the risks and uncertainties set forth below. By its very nature, forward-looking information involves numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, PowerBand’s actual performance and financial results may vary materially from those estimates and intentions contemplated, expressed or implied in the forward-looking information. These risks and uncertainties include those relating to incorrect assessments of value when making acquisitions, increases in debt service charges, the loss of key personnel, the anticipated impact of the COVID-19 pandemic, the impact of increased inflation and the expected economic recession, fluctuations in foreign currency and exchange rates, inadequate insurance coverage, liability for cash taxes, counterparty risk, compliance with environmental laws and regulations, reduced customer demand, operational risks involving our facilities, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in our MD&A under the heading “Risk Factors”. The preceding list of assumptions, risks and uncertainties is not exhaustive.
When relying on our forward-looking information to make decisions with respect to PowerBand, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking information is provided as of the date of this document and, except as required by law, PowerBand does not undertake to update or revise such information to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking information.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.
