VANCOUVER, British Columbia (December 1, 2020) – PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) (“PowerBand“, “PBX” or the “Company“) announces the filing of its condensed interim consolidated financial statements, MD&A and related CEO and CFO certificates for the three-and-nine month periods ended September 30, 2020. These documents can be found under the Company’s SEDAR profile at www.sedar.com.
Total Revenue for the three months ended September 30, 2020 was $576,725, as compared to $461,116 for the same period in 2019. The Net Loss for the period was $2,878,428, as compared to a Net Loss of $2,510,627 for the same period in 2019.
“PowerBand was very active in the third quarter of 2020 further developing our ground-breaking virtual transaction platform for the automotive industry, now officially branded under the name of DRIVRZTM “, stated PowerBand CEO Kelly Jennings. “DRIVRZTM will allow millions of drivers to buy, lease, sell and trade cars and trucks, from any location with any connected digital device.”
Some of the key third quarter highlights included:
- In July 2020, MUSA Auto Finance, LLC (“MUSA“), the Company’s U.S. leasing division, completed a very innovative technology integration that linked its proprietary auto lease portal with one of the largest lender platforms currently available to financial institutions. The success of that integration resulted in an exclusive contract with two national funding partners that had a common goal to achieve securitizing a billion dollars a year in auto asset backed securities. MUSA was also successful in testing a controlled amount of originations in Texas and Florida for the first 45 days of the new program. MUSA then set its sights on being licensed across the U.S. in collections, servicing, origination, and leasing. In the last 3 months, and during pandemic conditions, MUSA has geographically expanded its footprint to include 20 U.S. states. More than 150 franchise dealers and large independents have signed contracts to do business with MUSA just since August. Even though travel restrictions have slowed critical dealer training efforts, lease originations have increased every single month since launching the new program just a few short months ago.
- D2D Auto Auction LLC’s (“D2D“), PowerBand’s 50/50 joint venture with Arkansas-based financier, Bryan Hunt, a Director of J.B. Hunt Transport, launched its online auction platform and successfully auctioned hundreds of vehicles on behalf of automotive dealers and for one of the global leaders in the ridesharing industry. Over USD $3 million in gross value of vehicles have been auctioned on the D2D platform. As a result of the equity method of accounting treatment for the D2D joint venture, the Company does not consolidate D2D’s results of operations into its financial statements. The 50% equity interest is shown on PowerBand’s Income Statement in the line item “Other items – Interest in joint venture”, and as disclosed in Note 7 in the September 30, 2020 Financial Statements.
- The Company further expanded its automotive-related insurance company alliances by entering into partnerships with Royal Administration Services, Inc. and HUB International Ltd. Under the respective agreements both companies will direct dealerships and their clients to the DRIVRZTM platform.
- The Company entered into an agreement with Syngrafii Inc. to allow consumers to safely and quickly sign automotive leases and other documents on the DRIVRZTM platform.
Subsequent to the end of the third quarter PowerBand continued to add to the breadth of the DRIVRZTM platform, including the following events:
- Five of the U.S. automotive industry’s proven leaders joined the Company as senior advisors, namely John Canales, Brent Green, Bruce Polkes, Steve Waller, and Kevin Wilks.
- The Company entered into an agreement to partner with one of the world’s leaders in big-data and artificial intelligence to offer 4.5 million vehicles for sale and lease on the DRIVRZTM platform.
- MUSA secured a second Forward Flow Purchase and Security Agreement with a California-based credit union for U.S. consumers and automotive dealers.
- Premier Auto Group, one of the United States’ fastest growing auto dealership networks, signed its 24 dealerships onto the DRIVRZTM platform.
- DRIVRZ US, LLC., a wholly owned subsidiary of Powerband Solutions US Inc., acquired a 60% interest in IntellaCar Solutions, LLC, (“IntellaCar“). IntellaCar, which is now being used by car dealerships in the United States, allows automotive dealers and consumers to price and purchase vehicles on a tablet or website.
- The Company executed a Common Voting Stock Purchase Agreement to acquire up to 15% of CB Auto Group, Inc.’s (“CB Auto“) common shares. The agreement provides the Company with the ability to market the DRIVRZTM platform to buy, lease, sell and trade cars and trucks to CB Auto’s union membership of 67 million people across the United States.
Added Jennings: “2020 has been a transformative year for PowerBand and making DRIVRZTM the place where you can buy, lease, sell, trade and finance a car or truck as easily as buying a product on Amazon.”
“We have also augmented our management and advisory team with the addition of proven leaders in the automotive industry, all of whom are dedicated to bringing DRIVRZTM to consumers and dealers to transform the antiquated trillion-dollar automotive marketplace in the U.S., Canada and globally.”
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.
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.
For further information, please contact:
John Mahoney, Special Advisor to the CEO
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.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.