Business
PowerBand Continues to Deliver Significant Growth in May 2021
Powerband Solutions' DRIVRZ™ products are delivering strong growth in the second quar...
About this update from Ameritrust Financial Technologies Inc.
[{"type":"text","content":"PowerBand Continues to Deliver Significant Growth in May 2021Powerband Solutions' DRIVRZ™ products are delivering strong growth in the second quarter.TORONTO, ON / ACCESSWIRE / June 8, 2021 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF)(Frankfurt:1ZVA) (\"PowerBand\", \"PBX\" or the \"Company\"), a comprehensive e-commerce solution transforming the online experience to sell, trade, lease, and finance vehicles, is pleased to announce that the Company's May 2021 financial results demonstrate continuation of strong month-over-month growth, positioning the Company for another strong quarter.Gross revenue increased to CDN $1.4 million in May 2021 from CDN $1.3 million in April 2021. Cumulative year-to-date gross revenue was CDN $5.6 million with a gross margin of 54%. Sales growth in June 2021 and subsequent months is expected to accelerate.Gross revenue is being derived predominantly from DRIVRZ Financial as the Company continues to ramp its new and used vehicle leasing and lending business in the U.S.. Momentum is strong as originations have increased to 175 in May 2021 from 69 in December 2020. The Company has now onboarded 417 dealers since inception, with 264 dealer agreements signed YTD and the sales funnel is robust to onboard more dealers throughout 2021 and into 2022. With the recent addition of a Chief Revenue Officer, a VP of Sales and 7 Dealer Sales Managers, DRIVRZ is targeting two originations per dealer, per month by the Q4 of 2021. Jon Lamb, DRIVRZ Financial CEO stated - \"Our platform is one of the few that addresses retention and margin compression. As we expand outreach, I anticipate retailer adoption to accelerate.\"As highlighted in previous announcements, DRIVRZ Financial has US$2B of lease lines secured with an ability to expand lines as originations ramp up. As of May 2021, the Company has utilized less than 3% of the lease lines available, demonstrating the long runway for growth.The Company expects its DRIVRZ Financial business unit to achieve profitability in June 2021 and for PowerBand Solutions, to achieve profitability in 2H 2021. These are key milestones and an inflection point as the Company advances to a self funding model in 2022.PowerBand Solutions continues to execute on key strategic initiatives of launching its other two business segments DrivrzXchange and DrivrzLane by the end of 2021...