PowerBand Secures USD $600,000 to Advance Cloud-Based Platform for Consumers and Dealers to Buy and Sell Automobiles, From Anywhere

PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) (“PowerBand”, “PBX” or the “Company”) is pleased to announce it has secured a further USD $600,000 from Texas-based D&P Holdings, Inc. (“D&P”).

The Company has made a strategic decision not to draw down further funds at this time from D&P, which has committed up to USD $10 million, because it has sufficient operational funds. The Company is on target for commercialization of its virtual-transaction platform that allows consumers and automotive dealers to buy, sell, lease, trade and finance vehicles from any location, using their smart phones or other digital devices.

“PowerBand’s mission is well-capitalized and on track to deliver the automotive industry a virtual-transaction platform that will allow the remote acquisition and sale of vehicles,” said PowerBand CEO Kelly Jennings. “Our virtual auctions, launched in April, are growing in popularity and we are now in advanced negotiations to acquire extensive institutional credit lines that will be made available to consumers and dealers on the PowerBand platform. For this reason we have decided we have no current need to draw down additional debt.”

The most recent capital injection is part of D&P’s ongoing commitment to invest up to USD $10 million in PowerBand Solutions US Inc. (“PowerBand US”), a wholly-owned subsidiary of the Company, and its cloud-based, transaction platform that enables consumers and dealers to buy, sell, lease and finance vehicles from smart phones and other devices, from any location, as easily as they now purchase a product on Amazon.

“We remain unwavering in our commitment to invest at least USD $10 million into PowerBand US,” said D&P’s CEO John Armstrong. “We are confident PowerBand’s virtual-transaction platform will greatly assist the automotive industry in recovering from the COVID-19 pandemic by empowering consumers and dealers to buy, sell, lease and trade cars and trucks from any remote location.”

D&P, which works directly with more than 850 dealerships in all 50 states, is one of the United States’ largest administrators of automotive warranty and insurance products. To date, it has completed USD $3.3 million of its USD $10 million investment into PowerBand US, which will be available as needed. It has also exercised an option to invest an additional USD $2.5 million into PowerBand’s Canadian leasing division.

PowerBand is advancing ongoing negotiations to secure extensive credit facilities that will be available on its cloud-based transaction platform for consumers and dealers. “We anticipate beginning loan originations in the near future,” said Jennings.

PowerBand’s platform will benefit key stakeholders in the automotive retail sector, including funders, OEMs and rental companies, by removing unnecessary third parties and their fees from sales transactions.

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:

Richard Goldman, VP Corporate Development
P: 1-866-768-7653
rgoldman@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.

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This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

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