TORONTO, ON/ACCESSWIRE/June 29, 2022/ PowerBand Solutions (TSXV: PBX) (OTCQB: PWWBF) (FRA: 1ZVA) (“power band” “PABX“or the”Company“), a complete e-commerce solution transforming the online experience for selling, trading, leasing and financing vehicles, announces that the Company has already made significant progress in streamlining its cost structure, improving sustainability at term of its business model PowerBand reduced recurring costs by C$2 million per quarter ($8 million annualized), representing $1.2 million per quarter of reduced expenses and $0.8 million per quarter capital cost avoidance The company has suspended spending for DrivrzLane while it conducts a comprehensive review of the business unit PowerBand will incur costs of approximately $0.5 million for severance and other one-time costs with Q2/22 financial results. The reduction in cost structure will be partially offset by the expansion of the sales team at DrivrzFinancial in the se end of semester 2022.
PowerBand also announces that it is working quickly to integrate with CDK Global’s DMS, which is an all-in-one desktop tool for enterprise dealerships. DrivrzFinancial has signed with some of the largest dealer groups in the United States, but has been restricted from generating creatives until the systems are fully integrated. This will be a crucial step in systematically stimulating arrangements with large, sophisticated organizations. The expected onboarding period should be 45-90 days.
Finally, PowerBand announces that it is now authorized to lend directly to consumers in Texas, California and Florida. This will provide an origination growth funnel as the company builds its presence in its core markets. The Company will provide further updates on its overall growth strategy by the end of Q3/22.
About PowerBand Solutions, Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and OTCQB markets, is a financial technology provider disrupting the automotive industry. PowerBand’s integrated cloud-based transaction platform facilitates transactions between consumers, resellers, backers and manufacturers (OEMs). It allows them to buy, sell, trade, finance and lease new and used vehicles, electric and non-electric, on any internet-connected phone, tablet or PC. PowerBand’s trading platform – being a registered trademark under DRIVERZ™ – is available in the North American and global markets.
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This press release contains forward-looking statements relating to the Company and other statements that are not historical facts. Forward-looking statements are often identified by words such as “will”, “may”, “should”, “anticipate”, “expect” and similar expressions. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding the Company’s future plans and objectives, the closing of the second tranche of financing, the use of Proceeds from the financing and matters relating to shareholder approval, 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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THE SOURCE: PowerBand Solutions Inc.
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