Powerband Announces Closing of Fully Subscribed CDN $5.3 Million Private Placement Financing

Rhea-AI Summary

PowerBand Solutions Inc. (PWWBF) has successfully closed a non-brokered private placement, issuing 18,275,862 units at $0.29 each, raising a total of $5.3 million. Each unit comprises one common share and a share purchase warrant, exercisable at $0.49 for 24 months. The funds will support the company’s expansion in the U.S., software development, and general working capital. The private placement was fully subscribed, with cash finders' fees of $92,802.52 paid to finders, along with 320,009 compensation warrants.

Positive

• Successfully raised $5.3 million through a fully subscribed private placement.
• Funds allocated for U.S. expansion and software development indicate growth potential.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / February 10, 2021 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF)(FSE:1ZVA) ("PowerBand", or the "Company") is pleased to announce that it has closed on its non-brokered private placement (the "Private Placement") of 18,275,862 units (the "Units") at a price of $0.29 per Unit for total proceeds of $5,300,000, previously announced on January 22, 2021. The Private Placement was fully subscribed. Each Unit is comprised of one common share of the Company ("Common Share") and one share purchase warrant (the "Warrants") of the Company. Each Warrant entitles the holder to receive, for no additional consideration, one Common Share, subject to adjustments, at an exercise price of $0.49 for a period of 24 months from their date of issuance.

Cash finders' fees of $92,802.52 were paid to arm's length finders. In addition, 320,009 compensation warrants (the "Finder Warrants") were issued. The Finder Warrants are exercisable at a price of $0.49 per common share for a period of 24 months after their date of issuance.

The gross proceeds of the Private Placement will be used to fund the Company's continued U.S. expansion, software development, business development, administration and for general working capital purposes. All securities issued in connection with the private placement are subject to a 4-month hold.

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
E: kj@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.

SOURCE: PowerBand Solutions Inc.

View source version on accesswire.com:
https://www.accesswire.com/629184/Powerband-Announces-Closing-of-Fully-Subscribed-CDN-53-Million-Private-Placement-Financing

FAQ

What is the purpose of PowerBand Solutions' recent private placement?

The private placement aims to fund PowerBand Solutions' U.S. expansion, software development, and general working capital.

How much money did PowerBand Solutions raise in their private placement?

PowerBand Solutions raised a total of $5.3 million in their recent private placement.

What is the exercise price for the warrants issued by PowerBand Solutions?

The warrants issued by PowerBand Solutions have an exercise price of $0.49.

How many units were issued in PowerBand Solutions' private placement?

PowerBand Solutions issued a total of 18,275,862 units in their private placement.

What are the terms of the compensation warrants issued to finders?

The compensation warrants issued to finders are exercisable at a price of $0.49 for a period of 24 months.