PowerBand Secures Second Financing Facility For Virtual Automotive Transaction Platform
In its third major development this week, PowerBand Solutions (TSXV: PBX) this morning announced that it has secured an additional financing facility for US-based consumers and dealers to use on the firms virtual transaction platform. The news follows the prior announcements this week that the company has secured 4.5 million vehicles that will be made available for sale and lease on its platform, and the launch of a DRIVRZ branded credit card for consumers.
Referred to as a Forward Flow Purchase and Security Agreement, the agreement will enable consumers on PowerBand’s virtual platform to have another source of funding for conducting sale and lease transactions. The latest finance facility is said to come from a California-based credit union, with the facility said to be similar to and expected to operate much the same as the US$300 million facility entered into back in July.
This second facility, much like the first facility arrangement entered into by the company, will be securitized, turned, and replenished once capacity is met. Combined, the facilities are part of the ongoing strategy being conducted by PowerBand to acquire multi billion dollar financing lines for consumers and dealers. These financings are to support lease originations from the virtual transactional platform, known as DRIVRZ.
“We will have 4.5 million vehicles on our virtual platform, making it one of the largest and most diverse inventories in the automotive industry. If you are a driver or auto dealer you will be able to search and finance the car or truck of your choice, as easily as buying something on Amazon.”
Kelly Jennings, CEO
Further details of the agreement are said to be withheld for commercial reasons.
Powerband Solutions last traded at $0.235 on the TSX Venture.
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