PowerBand Solutions Engages Phoenix Corporate Finance To Facilitate Up To $250 Million In Credit Facilities

PowerBand Solutions (TSXV: PBX) announced this morning that it has engaged Phoenix Corporate Finance as its corporate advisory firm to facilitate up to $250 million in credit facilities. The facilities will be utilized by PowerBand’s financing arm to enable the platform to offering leasing and financing options to consumers.

Once raised, the $250 million in credit facilities will enable to the PowerBand cloud-based platform to facilitate Canadian transactions while removing the middleman. The facilities will enable the company to offer in-house leasing and financing solutions and further drive the platforms use as a place to conduct the buying, selling, trading or leasing for both dealers and consumers alike. The company is also negotiating further lease lines for both Canada and the United States with other institutions.

Transactions on the platform will be facilitated largely through that of MUSA Auto Finance, which PowerBand currently owns a 60% stake in. MUSA has developed an innovative transaction platform that can calculate and provide a lease approval in as little as eight seconds. The proprietary technology resulted in the firm becoming a national leasing partner with Tesla in 2018.

Phoenix Corporate Finance has also been engaged to facilitate up to $10 million in non-dilutive operating capital, which will be put towards PowerBand’s recently established Canadian captive financing arm.

Once fully implemented, the PowerBand cloud-based transaction platform will enable people to buy, sell, trade or lease vehicles with the same ease you now buy a product on Amazon, in effect uberizing the experience of acquiring a truck or car. We believe the engagement of Phoenix, to raise a total of $260 million, is another milestone in our goal to raise $1-billion in credit facilities for leases and loans that will be approved through the PowerBand platform.

Kelly Jennings, CEO of PowerBand Solutions

The recently signed agreement between Phoenix and PowerBand continues Powerband’s strategy of sourcing an aggregate amount of $1.0 billion in credit facilities and financing capacity. The financing capacity will enable it to bring its exchange platform to thousands of dealerships across North America, in both Canada and the US.

The news follows last weeks announcement that the firms CEO and largest shareholder will be voluntarily locking up their 37% stake in the company in a bid to demonstrate their commitment to the success of PowerBand.

PowerBand Solutions last traded at $0.24 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.