PowerBand Solutions (TSXV: PBX) has entered into a memorandum of understanding with an undisclosed global insurance financial services provider. The arrangement will see the firm sell automotive insurance products on the DRIVRZ virtual transaction platform developed by PowerBand.
The MOU outlines an arrangement whereby the partner will work with PowerBand Solutions, along with strategic partner D&P Holdings, to “draft reinsurance agreements for new business opportunities, or existing portfolios during the first quarter of 2021 for US and Canadian Markets.” Separate from the MOU, the two firms are also discussing an arrangement whereby the insurance firm is to make a strategic investment into PowerBand.
More specifically, the two firms will look for opportunities to expand lease financing facilities for PowerBand, with an emphasis being placed on transactions involving electric vehicles. The arrangement will also see the offering of specialty insurance and related products by the company on the DRIVRZ platform, along with products that target consumer to consumer vehicle transactions, automotive manufacturing, commercial and consumer lending and leasing, and more. The initial arrangement will look for opportunities in North America, before expanding globally.
“Adding this partnership to DRIVRZ in the first quarter of 2021, our mutually agreed upon target, is an inflection point, meaning we can quickly scale DRIVRZ to the North American electric and non-electric vehicle market, and beyond. As we expand in North America and other markets, we intend to leverage this increased scale to expand our leasing and lending business by establishing warehouse lending facilities with strategic partners.”
Jon Lamb, President of PowerBand Solutions
The two firms will now work towards entering a definitive agreement.
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In regards to the proposed equity investment into PowerBand by that of the undisclosed firm, the two firms remain in discussion with full details to be released upon the final term sheet being approved by both parties.
PowerBand Solutions last traded at $0.93 on the TSX Venture.
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