PowerBand Announces Shares For Debt Conversion For Chief Executive Officer

Rhea-AI Summary

PowerBand Solutions Inc. (OTCQB:PWWBF) has announced the settlement of a $1 million debt owed to its CEO, Kelly Jennings, through the issuance of 800,000 common shares at $1.25 each. This settlement, approved by the Board, reflects Jennings' commitment to the company as he transforms his loan into equity. Additionally, the company's DRIVRZ™ virtual marketplace is set to enhance automotive transactions and is on track for profitability. The share issuance is pending approval from the TSX Venture Exchange and will be subject to a four-month hold.

Positive

• Settlement of $1 million debt to CEO strengthens his equity stake in the company.
• The DRIVRZ™ marketplace offers access to approximately 4.5 million vehicles, expanding operational capacity.
• CEO expresses confidence in the company's upcoming transition to profitability.

Negative

• Issuing shares to settle debt may dilute current shareholders' interests.
• Current share price of $1.03 is below the deemed issuance price of $1.25, indicating potential overvaluation.

DRIVRZ™ Virtual Marketplace On Track To Meet 2021 Milestones And Profitability

VANCOUVER, BC / ACCESSWIRE / April 1, 2021 / PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) ("PowerBand", "PBX" or the "Company"), an innovative automotive fintech leader providing digital and virtual platform solutions to buy, sell, trade, lease, or finance vehicles to consumers, dealers and OEMs, announces the settlement of debt owed to Kelly Jennings, the CEO of the Company.

The PowerBand Board approved the Company to make a settlement of an outstanding debt of $1,000,000 owed to the CEO of the Company, as of March 31, 2021, through the issuance of 800,000 Common Shares in the capital of PowerBand at a deemed price of $1.25 per Common Share. The closing share price of PBX on the TSX Venture Exchange on March 31, 2021 was $1.03.

"PowerBand wants to thank Mr. Jennings for his generous loan early on which he is now turning into a further equity position in PowerBand and the DRIVRZ™ virtual marketplace, which we believe will transform automotive retail." said Jon Lamb, President of North American Operations.

DRIVRZ™ is PowerBand's proprietary virtual marketplace for consumers, automotive dealers and OEMs to buy, lease, sell, auction, finance and insure vehicles from smart phones or other digital devices. It

provides consumers and automotive dealers access to approximately 4.5 million vehicles for sale or lease.

The DRIVRZ™ auction component‚ drivrzXchange, is now being piloted in northwest Arkansas and will be rolled out to other states and nationally in the months ahead.

"I believe in this company and I am delighted to turn my loan into share equity," said CEO Kelly Jennings. "We are on track to profitability and the full DRIVRZ™ suite of services will soon be available to millions of drivers, as well as automotive dealers."

The issuance of the Common Shares to settle the debt is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of issuance.

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.

For further information, please contact:

Kelly Jennings
Chief Executive Officer
P: 866 768 7653
E: info@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.

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.

SOURCE: PowerBand Solutions Inc.

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https://www.accesswire.com/638601/PowerBand-Announces-Shares-For-Debt-Conversion-For-Chief-Executive-Officer

FAQ

What is the significance of the PowerBand Solutions debt settlement?

PowerBand Solutions settled a $1 million debt owed to CEO Kelly Jennings by issuing 800,000 shares, strengthening Jennings' equity position.

How does the DRIVRZ™ virtual marketplace impact PowerBand Solutions' future?

The DRIVRZ™ marketplace is expected to enhance automotive transactions and is projected to contribute significantly towards the company's profitability.

What is the current stock price of PowerBand Solutions (PWWBF)?

As of March 31, 2021, PowerBand Solutions' stock price was $1.03, below the $1.25 issuance price for shares.

Is the issuance of shares for debt settlement common in the stock market?

Yes, issuing shares for debt settlement is a common practice, but it can lead to shareholder dilution.

When will the shares issued to settle the debt be available for trade?

The shares will be subject to a four-month hold period, expiring four months and one day from the date of issuance.