Texas-based Insurance Administrator Will Offer Auto Insurance on PowerBand's Virtual Platform
VANCOUVER, BC / ACCESSWIRE / June 25, 2020 / PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) ('PowerBand', 'PBX' or the 'Company') is pleased to announce that its subsidiary, PowerBand Solutions US Inc. ('PowerBand US'), has closed on its convertible debenture financing (see news release dated March 2, 2020) and that Texas-based D&P Holdings, Inc. ('D&P') will immediately convert USD $6 million of PowerBand US debentures into a direct investment in the Company's US and Canadian financing and leasing divisions.
The investment comes at the time PowerBand is set to begin lease originations for vehicles in the United States using its virtual transaction system, which will enable consumers to use their smart phones, tablets and computers to acquire and finance electric and non-electric vehicles, as easily as buying a product on Amazon.
'We have seen the PowerBand transaction platform in action and we are confident it will be widely used by both consumers and auto dealers, who are increasingly looking to carry out their automotive transactions on a digital transaction platform,' said D&P CEO John Armstrong. 'We are converting our debentures into an ownership stake because we are confident PowerBand's transaction platform will revolutionize the industry, allowing people to buy, sell, lease, trade and finance a vehicle from any location using their smart phones.'
D&P is one of the United States' largest administrators of automotive warranty and insurance products, directly working with more than 850 dealerships in all 50 states. It is the managing general agency for The Hanover Insurance Group, which has a $3.8-billlion market valuation. To date, D&P has invested USD $6 million in debentures in PowerBand US.
'D&P and their team are highly respected leaders in the automotive retail and insurance sectors - we welcome their decision to deepen their partnership with us. I want to thank John Armstrong for bringing his partners and national network of dealerships to PowerBand, a resource that will ensure the imminent launch of PowerBand's transaction platform will be a great success,' said PowerBand CEO Kelly Jennings. 'D&P will also add more value to PowerBand by offering consumers and dealers automotive insurance products directly on the PowerBand transaction platform, a major convenience for consumers.'
PowerBand's first lease originations are set to begin on the leasing platform operated by MUSA Holdings, LLC ('MUSA'), which PowerBand acquired a 60 per cent share of in July 2019. Founded in 2016, MUSA's innovative transaction platform provides dealers and consumers with the most advanced leasing options in the industry. MUSA takes applications, calculates leases, auto-decisions applications, provides approvals back to dealer partners and prefills lease contracts accurately. Approvals can occur in seconds. As a result of its proprietary technology, MUSA was awarded a contract by Tesla Motors to become a national leasing partner in 2018.
D&P has been granted exclusive global rights to act as administrator for new insurance products being sold globally through PowerBand's transaction platform. These include administrating all requested and approved vehicle services contracts, auto warranty products, guaranteed asset protection, down payment protection, excess wear and tear, key replacement, windshield replacement, tire and wheel, ETCH/anti-theft, lease wrap, and all ancillary products.
Under the recent agreement, D&P's debentures will convert into a 9% ownership stake in both PowerBand US and the Company's Canadian financing and leasing division, DRIVRZ Financial Inc.
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.
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Richard Goldman, VP Corporate Development
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SOURCE: PowerBand Solutions Inc.
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