- PowerBand has received a commitment of up to $10 million in investment from Texas-based D&P Holdings Inc., $3.3 million of which has been completed
- D&P is one of the largest administrators of warranty and insurance products in the U.S. automotive industry and works directly with hundreds of dealerships across the country
- PowerBand’s cloud-based platform benefits key stakeholders in the industry by removing unnecessary third parties and fees, allowing consumers to trade vehicles through their smart phones
PowerBand Solutions Inc. (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA) is helping the automotive industry recover from the coronavirus pandemic by empowering dealers and consumers to buy, sell, lease and trade cars and trucks from any remote location. The company has secured an additional $600,000 from Texas-based D&P Holdings Inc. to offer its platform enabling virtual transactions to consumers and automotive dealers across the United States.
The platform will allow consumers to sell, buy, lease, auction and finance vehicles, irrespective of their location, from their smartphones or other devices. PowerBand has sufficient operational funds to continue its platform commercialization plans, which is why it will not be drawing additional funds from D&P at this time, according to a company press release (http://ibn.fm/7W1JM).
“PowerBand’s mission is well-capitalized and on track to deliver the automotive industry a virtual-transaction platform that will allow the remote acquisition and sale of vehicles,” PowerBand CEO Kelly Jennings stated in a news release. “Our virtual auctions, launched in April, are growing in popularity and we are now in advanced negotiations to acquire extensive institutional credit lines that will be made available to consumers and dealers on the PowerBand platform. For this reason, we have decided we have no current need to draw down additional debt.”
The capital injection of $600,000 is part of D&P’s ongoing commitment to invest up to $10 million in PowerBand Solutions US Inc., a wholly owned subsidiary of PowerBand Solutions. According to D&P CEO John Armstrong, his company remains unwavering in its commitment to invest at least $10 million in the platform’s development. “We are confident PowerBand’s virtual-transaction platform will greatly assist the automotive industry in recovering from the COVID-19 pandemic by empowering consumers and dealers to buy, sell, lease and trade cars and trucks from any remote location,” Armstrong added.
D&P, which works directly with more than 850 dealerships in all 50 states, is one of the United States’ largest administrators of automotive warranty and insurance products. To date, it has completed $3.3 million of its $10 million investment into PowerBand US, which will be available as needed.
PowerBand’s platform will benefit key stakeholders in the automotive retail sector, including buyers, dealers, funders, OEMs and rental companies, by removing unnecessary third parties and their fees from sales transactions. The platform has considerable growth potential in the context of a fast-expanding online vehicle transaction sector as a result of the coronavirus pandemic, as people are looking for safer ways to buy and sell vehicles to avoid crowded dealerships and respect social distancing rules necessitated by the pandemic. Nearly 90% of Americans report they dislike the car dealership experience, saying they feel anxious or uncomfortable in dealership settings.
The company’s cloud-based platform is going to be advertised across the United States via a partnership with Source Digital, a pioneer in immersive commerce through the use of digital media platforms and video content on the internet. This unique campaign will use Source’s patented technology to promote PowerBand’s platform inside popular video content with various channels and influencers in the U.S. (http://ibn.fm/U4KaB).
For more information, visit the company’s website at www.PowerBandSolutions.com
NOTE TO INVESTORS: The latest news and updates relating to PWWBF are available in the company’s newsroom at http://ibn.fm/PWWBF
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