PowerBand Announces Conversion of Debenture

Rhea-AI Summary

PowerBand Solutions Inc. (OTCQB:PWWBF) has successfully converted a $1.5 million Convertible Debenture, with the issuance of 21,266,968 common shares. $1 million converts at $0.065 per share and $500,000 at $0.085 per share. This shares issuance follows the granting of 950,000 Restricted Share Units and 500,000 options, both vesting immediately. Post-issuance, the company has 135,434,856 common shares outstanding. PowerBand is a fintech company offering a cloud-based platform for automotive transactions, planned for North American and global markets.

Positive

• Successful conversion of $1.5 million Convertible Debenture into 21,266,968 shares.
• Granting of 950,000 Restricted Share Units and 500,000 options to enhance consultant incentives.
• Increased liquidity and potential investor interest due to substantial share issuance.

Negative

• Conversion may dilute existing shareholder value due to the large increase in outstanding shares.

VANCOUVER, BC / ACCESSWIRE / October 23, 2020 / PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt: 1ZVA) ("PowerBand", "PBX" or the "Company") announces that the sole holder of a $1.5 million Convertible Debenture with a maturity date of October 22, 2020 has elected to convert the entire principal, pursuant to an unsecured convertible note dated October 22, 2019. $1.0 million of the principal amount is convertible at a price of $0.065, resulting in 15,384,615 common shares of the Company being issued. $500,000 of the principal amount is convertible at a price of $0.085, resulting in 5,882,353 common shares of the Company being issued. In total, 21,266,968 common shares will be issued as fully paid and non‑assessable shares in the capital of PowerBand Solutions Inc. as of October 22, 2020. The securities issued are subject to a four month hold period which will expire on February 23, 2021.

The Company also announces that it has granted 950,000 Restricted Share Units ("RSU's") to a consultant, subject to the Company's 2020 Restricted Share Unit Plan. The RSU's vest immediately and 950,000 common shares will be issued as fully paid and non‑assessable shares in the capital of PowerBand Solutions Inc. as of October 22, 2020. The securities issued are subject to a four month hold period which will expire on February 23, 2021.

In addition, the Company announces that it has granted 500,000 options to a consultant. The options vest immediately, have an exercise price of $0.22, and an expiry date of October 20, 2025.

Following the issuance of the above-noted securities PowerBand Solutions Inc. will have 135,434,856 common shares issued and outstanding.

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/611992/PowerBand-Announces-Conversion-of-Debenture

FAQ

What is the significance of PowerBand's $1.5 million Convertible Debenture conversion?

The conversion results in the issuance of 21,266,968 common shares, enhancing liquidity but potentially diluting existing shareholders' value.

How many shares will be outstanding after the Convertible Debenture conversion?

After the conversion, PowerBand Solutions Inc. will have a total of 135,434,856 common shares issued and outstanding.

What are the details of the Restricted Share Units granted by PowerBand?

PowerBand granted 950,000 Restricted Share Units that vest immediately, leading to the issuance of additional common shares.

What is the exercise price and expiry date for the options granted to a consultant?

The options granted have an exercise price of $0.22 and will expire on October 20, 2025.

What is the primary business focus of PowerBand Solutions Inc.?

PowerBand is a fintech provider focused on disrupting the automotive industry through a cloud-based transaction platform for buying, selling, and financing vehicles.