PowerBand and its U.S. Leasing Division, MUSA, Secure Additional Financing Facilities for its Virtual Platform That Will Offer 4.5 Million Vehicles For Sale and Lease

Rhea-AI Summary

PowerBand Solutions Inc. (OTCQB:PWWBF) has secured a second Forward Flow Purchase and Security Agreement via its U.S. leasing division, MUSA Auto Finance, with a California credit union. This builds on the USD $300 million financing established in July 2020. These arrangements are intended to enhance lease originations via PowerBand's virtual platform, DRIVRZ, which will feature 4.5 million vehicles for lease and sale. The platform is designed for quick approvals and is expanding across 14 states, serving over 200 million people.

Positive

• Secured a second financing agreement to enhance lease originations.
• Access to 4.5 million vehicle inventory for leasing and sales.
• Platform expansion into 14 states with a population over 200 million.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / October 22, 2020 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF)(Frankfurt:1ZVA) ("PowerBand", "PBX" or the "Company") and its U.S. leasing division, MUSA Auto Finance, LLC ("MUSA"), have secured a second Forward Flow Purchase and Security Agreement with a California-based credit union for U.S. consumers and automotive dealers using the PowerBand virtual transaction platform.

The financing agreement is similar to, and augments, the USD $300 million in financing MUSA already secured on July 13^th, 2020 with another U.S. national depository institution.

The financing facilities are part of PowerBand's ongoing strategy to acquire multi-billion-dollar consumer and dealer financing lines to support lease originations from the PowerBand virtual transaction platform - DRIVRZ - which will offer up to 4.5 million new and used vehicles for lease and sale in the U.S. and Canada.

With the financing, and access to the 4.5 million vehicle database, drivers and automotive dealers will be able to search for a vehicle from their smart phones and be approved for a lease in seconds by the MUSA lease platform, which is 60 per cent owned by PowerBand. As a result of its proprietary technology, MUSA was awarded a contract by Tesla Motors to become a national leasing partner in 2018.

"We will have 4.5 million vehicles on our virtual platform, making it one of the largest and most diverse inventories in the automotive industry," said PowerBand CEO Kelly Jennings. "If you are a driver or auto dealer you will be able to search and finance the car or truck of your choice, as easily as buying something on Amazon."

Under the terms of the July financing agreement, once the USD $300 million facility is fully funded it will be securitized, turned and replenished, something the Company expects will happen many times during the year as traffic on the PowerBand digital transaction platform continues to grow. The Company's second financing agreement, which follows a similar structure, was signed October 14^th, 2020. Details of the agreement are being withheld for commercial reasons.

PowerBand's virtual platform provides one-stop-shopping for drivers and dealers to buy, sell, lease, finance and insure their vehicles, from any digital device and any location. PowerBand - being branded under DRIVRZ - is now available in 14 states with a population of more than 200 million.

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:

Richard Goldman, VP Corporate Development
P: 1-866-768-7653
rgoldman@powerbandsolutions.com

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 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.

SOURCE: PowerBand Solutions Inc.

View source version on accesswire.com:
https://www.accesswire.com/611740/PowerBand-and-its-US-Leasing-Division-MUSA-Secure-Additional-Financing-Facilities-for-its-Virtual-Platform-That-Will-Offer-45-Million-Vehicles-For-Sale-and-Lease

FAQ

What is the significance of PowerBand's second financing agreement with MUSA Auto Finance?

The second financing agreement enhances PowerBand's ability to support lease originations through its virtual platform, potentially increasing transactions and customer reach.

How many vehicles will PowerBand's platform offer for lease and sale?

PowerBand's platform, DRIVRZ, will offer access to 4.5 million new and used vehicles for lease and sale.

What was the amount of the initial financing secured by MUSA Auto Finance in July 2020?

MUSA Auto Finance secured an initial financing of USD $300 million in July 2020.

In which states is PowerBand's virtual platform available?

PowerBand's virtual platform is currently available in 14 states across the U.S.

What technology does PowerBand leverage through its leasing platform?

PowerBand's leasing platform utilizes proprietary technology to enable quick approvals for leases via smart devices.