PowerBand Announces $5.3 Million Private Placement Financing

January 23, 2021

Securing capital resources to support development, growth and expansion

VANCOUVER, BC  (January 22, 2021) PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF) (Frankfurt: 1ZVA) (“PowerBand“, or the “Company“) is pleased to announce its intention to complete a non-brokered private placement financing for gross proceeds of up to $5.3 million (the “Private Placement“).

The Company intends to the use the net proceeds from the Private Placement to support its continual development, growth, market expansion and for general working capital purposes. Up to 18,275,862 units will be placed (the “Units“), at a price of $0.29 per Unit, with the objective of raising up to $5,300,000. Each Unit will consist of one common share and one common share purchase warrant (the “Warrants“) of the Company. Each Warrant will entitle the holder to purchase one common share of the Company at an exercise price of $0.49 for a period of 24 months from their date of issuance.

Cash finders’ fees of up to 5% of the gross proceeds raised in the Private Placement may be paid to arm’s length finders. As additional consideration, qualified registrants may be issued compensation warrants (the “Finder Warrants“) exercisable for that number of common shares of the Company equal in number to 5% of the number of Units sold in the Private Placement. The Finder Warrants will be exercisable at a price of $0.49 per common share for a period of 24 months after their date of issuance.

All securities issued in connection with the private placement are subject to a 4-month hold. The Company has received conditional approval from the TSXV for the Private Placement, however closing of the Private Placement remains subject to final approval from the TSXV.

The Company will be seeking to close the Private Placement, in one or more tranches, over the next two weeks.

About PowerBand Solutions, Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand’s integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric- and non-electric vehicles, on smart phones or any other online digital devices, from any location. PowerBand’s transaction platform – being trademarked under DRIVRZ™ – is being made available across North American and global markets.

For further information, please contact:
Kelly Jennings
Chief Executive Officer
E: info@powerbandsolutions.com
P: 866 768 7653

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

This news release contains forward-looking statements relating to the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, we cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as at the date of this news release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

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