Powerband Launches D2D Auto Auctions in the U.S.
Vancouver, British Columbia -- (Accesswire – April 2, 2019) - PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (Frankfurt: 1ZVA) ("PowerBand", “PBX” or the "Company”), a leading online automotive auction, remarketing and sales platform in North America, is pleased to announce the official launch of D2D Auto Auctions (“D2D”).
D2D Auto Auctions is the realization of the previously announced partnership PowerBand and Bryan Hunt entered into in November 2018 to establish an automotive online remarketing network in the United States. Since that time PowerBand has been customizing its auction platform for the U.S market while Bryan Hunt and his team at 71B Auctions in Springdale, Arkansas have been marketing the D2D remarketing solution to its vast base of existing dealers who currently buy and sell vehicles at their physical auction locations. To date over 1,300 dealers have been registered on the D2D platform and this number is expected to increase as D2D’s sales team targets additional dealerships and commercial customers, including leasing, rental and fleet companies, across the southern United States. D2D customers are able to access the online auction platform on their computers at www.D2DAA.com, or on their mobile devices by downloading the D2D App, that is available on either iOS or Android.
Mike Moen, President and COO of PowerBand, stated: “In partnership with Bryan Hunt we are excited to have launched D2D Auto Auctions’ online platform. D2D’s customers will be able to save considerable time and money buying and selling vehicles online versus the traditional physical auction method. D2D’s customers will also have access to a greater supply and variety of used vehicles, including vehicles exported from Canada, than they would through physical auction channels. In the U.S. alone over 40 million used vehicles exchange hands each year, with over 10 million vehicles being bought and sold through auctions. Online auctions are growing at a faster rate than physical auctions and we believe D2D has a large opportunity to capture considerable market share in a fast growing market segment of the used vehicle industry, giving PowerBand a solid foothold in the U.S. automotive transaction marketplace.”
As the rollout of D2D gains traction in the second quarter of 2019, PowerBand anticipates online vehicle auction transactions, and the associated transaction revenue, on the D2D platform to increase month-over-month as more dealers choose to buy and sell used vehicles online. PowerBand’s 50% ownership in the D2D partnership gives it an equal share of revenues generated.
In addition, the Company announces that it intends to settle an outstanding debt of $705,035.00 owed to the CEO of the Company, as of March 31, 2019, through the issuance of 7,050,350 common shares in the capital of PowerBand ("Common Shares") at a deemed price of $0.10 per Common Share. The closing share price of PBX on the TSX Venture Exchange on April 1, 2019 was $0.09.
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 issue.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About PowerBand Solutions Inc.
PowerBand Solutions Inc. is a technology provider listed on the TSX Venture Exchange that is developing solutions for automotive and other industries that drive efficiency and transparency in the marketplace. PowerBand has developed and commercialized a leading-edge online auction platform that increases revenues and profit margins for its automotive dealership, Original Equipment Manufacturer, commercial fleet and rental company customers. PowerBand's remarketing platform, the PowerBand Exchange, incorporates the industry's latest auction technologies, inventory management, market intelligence, and appraisal processes.
For further information, please contact:
Carolyn Capaccio, Jody Burfening, LHA Investor Relations
Richard Goldman, VP Corporate Development, PowerBand
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.
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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.