PowerBand Closes First Tranche of US$10.0 Million Financing

PowerBand Solutions (TSXV: PBX) has closed on the first US$1.5 million tranche from its previously announced US$10.0 million financing. The investment results in significant financing for both its Canadian and US based operations as it works towards securing credit facilities for its automotive finance and leasing platform.

The investment comes from that of D&P Holdings, one of the largest providers of warranty and insurance products in the US. The company currently deals directly with more than 850 dealerships across the United States, and is the managing general agency for the Hanover Insurance Agency, a firm valued in excess of $5 billion.

We are delighted to make this USD $10-million strategic investment, to be part of PowerBand and help the Company secure the necessary credit facilities for their revolutionary transaction system. This technology allows you to approve a vehicle lease in seconds, rather than days, as the Company and its teams have already proven with Tesla. That, in itself, is revolutionary for the automotive industry and consumers.

John Armstrong, CEO of D&P

PowerBand is currently in negotiations to secure extensive credit facilities for its cloud-based transactional platform, which which will allow consumers and dealers to buy, sell, lease and trade vehicles on their smart phones and others devices. The funding from D&P is a significant step in moving the platform forward with securing these credit facilities for electric and non-electric vehicles.

The $10.0 million investment takes the form of convertible debentures within a subsidiary of PowerBand Solutions. With the first tranche for $1.5 million closing on March 6, the second tranche, valued at $3.5 million, will now close April 6, 2020. The third and final tranche for $5.0 million will then close May 6, 2020. All debt in relation to the financing will be due March 6, 2023, and bears interest at a rate of 9.0% per annum.

D&P Holdings will also have the option to convert the debt to equity in PowerBand’s subsidiaries. If converted, the debt will result in D&P owning a 9% interest in PowerBand US, while also owning a 9% interest in PowerBand’s Canadian leasing division.

Lastly, 2.4 million common share purchase warrants, with an exercise price of $0.30 have been issued in connection with the financing. The warrants have a term of 24 months, and are subject to a four-month hold period.

PowerBand Solutions last traded at $0.15 on the TSX Venture.


FULL DISCLOSURE: PowerBand Solutions is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover PowerBand Solutions on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

PowerBand Solutions Secures US$2.0 Billion In Lease Lines For EVs

PowerBand Solutions (TSXV: PBX) this morning revealed that it has secured two additional credit facilities....

Tuesday, May 4, 2021, 08:05:20 AM

PowerBand Solutions Guides To Between $70 Million To $90 Million In 2022 Revenues

PowerBand Solutions (TSXV: PBX) went out on a limb last night and released an outlook...

Wednesday, December 1, 2021, 08:21:05 AM

PowerBand Sees D&P Holdings Invest Further US$2.5 Million

PowerBand Solutions (TSXV: PBX) announced this morning that investor D&P Holdings has elected to exercise...

Monday, March 16, 2020, 09:09:07 AM

PowerBand Solutions Secures US$300 Million Lease Financing, Begins Lease Originations

The big day is here for PowerBand Solutions (TSXV: PBX) shareholders. The company announced this...

Monday, July 13, 2020, 09:56:07 AM

PowerBand Solutions Appoints Shibu Abraham As CFO

PowerBand Solutions (TSXV: PBX) this morning announced the appointment of a Chief Financial Officer. Shibu...

Monday, January 4, 2021, 09:18:08 AM