PowerBand Sees D&P Convert US$6 Million Debentures To Equity Stake
PowerBand Solutions (TSXV: PBX) this morning announced that it has seen D&P Holdings convert US$6 million worth of debentures in PowerBand Solutions US to that of an equity stake. The conversion significantly improves PowerBand’s balance sheet while also demonstrating the commitment that D&P Holdings has to the company.
The conversion of the debt into equity of the company is said to be a result of the company being set to begin lease originations on its virtual automotive transactional system. D&P’s confidence that the platform will be widely used by both consumers and auto-dealers alike lead them to converting the debt into ownership.
Further, lease originations are set to begin in the near term on PowerBand’s MUSA leasing platform. The platform offers one of the most advanced leasing options in the industry, with technology that auto decisions lease applications and provides approvals to consumers in just seconds. The platform will be accessed via PowerBand’s virtual transaction system, which enables consumers to buy, sell, lease, trade and finance a vehicle from any location through the use of a smartphone or other digital device.
D&P Holdings is one of the largest administrators in the US of automotive warranty and insurance products. The company works directly with over 850 dealerships in all 50 US states, while also serving as the managing general agency for The Hanover Insurance Group. D&P has been granted the exclusive rights to act as administrator for insurance products being sold through PowerBand’s platform. Such products include vehicle service contracts, excess wear and tear, warranty products, asset protection and more.
The debentures will be converted into a 9% equity stake in both PowerBand US and DRIVRZ Financial Inc, PowerBand’s Canadian leasing and financing division.
PowerBand Solutions last traded at $0.22 on the TSX Venture.
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