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PowerBand Announces Up to $12M Brokered Private Placement Offering to Accelerate Growth and Launch Online Marketplace

Not for distribution to United States newswire services or for dissemination in the United States

TORONTO, June 15, 2021 (GLOBE NEWSWIRE) — PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (Frankfurt: 1ZVA) (“PowerBand“, “PBX” or the “Company”), a comprehensive e-commerce solution transforming the online experience to sell, trade, lease, and finance vehicles, is pleased to announce that it has entered into an agreement with Desjardins Capital Markets and Scotiabank, acting as co-bookrunners and co-leads (the “Agents”), whereby the Agents have agreed to sell, on a best efforts private placement basis up to 17,647,100 common shares of the Company (the “Offered Shares”) at a price of $0.68 per Offered Share for gross proceeds of up to $12,000,028 (the “Offering”). The Company has granted the Agents an option, exercisable, in whole or in part, to sell up to an additional 15% of the Offering at the Issue Price for market stabilization purposes and to cover over-allotments, if any (the “Agents’ Option”). If the Agents’ Option is exercised in full, the total gross proceeds of the Offering would be approximately $13,800,032.

All securities issued in connection with the private placement are subject to a 4-month hold. Closing of the Offering will be subject to certain closing conditions, including approval from the TSX Venture Exchange. The Company anticipates closing the transaction on or about July 8, 2021.

The Company intends to use the proceeds to fortify the balance sheet, accelerate growth from DRIVRZ Financial and launch DrivrzXchange and DrivrzLane before the end of 2021. Kelly Jennings, CEO commented “This transaction serves to de-risk our business plan and enables us to attract new capital markets partners and sophisticated investors as we continue to accelerate growth and scale our business. This is a very strategic financing as it positions all three business segments to contribute to financial results in 2022”.

The Offered Shares will be offered for sale by the Agents in each of the provinces and territories of Canada.

This news 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, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

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 any phone, tablet or PC connected to the internet. 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: [email protected]
P: 1-866-768-7653

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.

FORWARD-LOOKING STATEMENTS

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 Company makes no representations or guarantees that the Offering will close.

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, including market factors, and subscriber demand for the Offering, 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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