PowerBand Announces Further Reductions to Cost Structure
PowerBand Solutions (PWWBF) has announced significant cost restructuring to align with trends in the automotive lease management industry. The company is reallocating resources to its DrivrzFinancial platform, which it believes will yield the highest returns for shareholders. Cost-saving measures include a personnel reduction and the relocation of its head office from Burlington, Ontario to Addison, Texas, expected to save approximately CAD $3 million annually, adding to prior savings of CAD $8 million. CEO Darrin Swenson emphasized these changes are essential to leverage growth opportunities in vehicle leasing.
- Total annualized savings expected to be CAD $11 million after restructuring.
- Focus on the DrivrzFinancial platform, which is seen as a significant growth opportunity.
- Reduction in personnel indicates potential operational challenges.
- Relocation of headquarters may disrupt existing operations temporarily.
TORONTO, ON / ACCESSWIRE / February 9, 2023 / PowerBand Solutions (TSXV:PBX)(OTCQB:PWWBF)(Frankfurt:1ZVA) ("PowerBand" "PBX"or the "Company"), a comprehensive e-commerce solution transforming the online experience to lease and finance vehicles, announces it has implemented additional cost restructuring measures to better align its operations to support changes in the automotive lease management industry.
As previously announced (see September 29, 2022, press release "Update to Strategic Plan"), the Company is allocating all growth capital and resources to its used and new vehicle leasing platform, DrivrzFinancial, as management believes it represents the highest return to shareholders. While the Company continues to work on increasing profitable lease originations and to raise additional funding lines to generate lease originations in other automotive segments, such as commercial and fleet, it has further optimized its cost structure through the reduction of personnel across all of its business units. The Company will also be implementing additional cost-saving initiatives, including moving its head office operations from Burlington, Ontario to its DrivrzFinancial office in Addison, Texas. The annualized reduction in expenses from today's announcement is expected to be approximately CAD
Darrin Swenson, CEO and Director of PowerBand Solutions states, "These difficult decisions regarding reductions in personnel have been necessary in order to allow PowerBand's management team, Board and strategic shareholders to focus all their efforts on the significant opportunity of our used and new vehicle leasing platform, DrivrzFinancial."
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, and funders. PowerBand's transaction platform - being trademarked under DRIVRZ™ - is being made available across the United States.
For further information, please contact:
Darrin Swenson
Chief Executive Officer and Director
E: Darrin.swenson@powerbandsolutions.com
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", "believes" 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, expected benefits and results from operations, expected return to shareholders as a result of allocating growth capital and resources to the Drivrz Financial platform and expected results of cost-saving initiatives 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.
SOURCE: PowerBand Solutions Inc.
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