PowerBand Solutions Closes $12.8 Million Private Placement

PowerBand Solutions (TSXV: PBX) this morning announced the closing of its previously announced private placement on an oversubscribed basis. The company raised gross proceeds of $12.8 million under the financing, which was co-lead by Desjardins Capital Markets and Scotiabank.

Under the terms of the financing, the company sold a total of 18.8 million common shares of the company, with no warrant included within the offering. Shares were sold at a price of $0.68 each.

Management and insiders reportedly participated in the offering as well, to the tune of $890,000, or 1.3 million common shares.

Proceeds from the financing are to be used to improve balance sheet liquidity, for the growth of DRIVRZ Financial, and for the launch of both DrivrzXchange and DrivrzLane before the end of the year.

“We are pleased to close this private placement with the support of our agents Desjardins and Scotiabank, and look forward to working with them and our new investors in achieving our vision for the Company’s growth.”

Kelly Jennings, CEO

PowerBand Solutions last traded at $0.86 on the TSX Venture.

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