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PowerBand Executes Unit Purchase Agreement to Acquire MUSA Auto Finance - A Leading FinTech Auto Lease Finance Company in the United States
VANCOUVER, BC / ACCESSWIRE / July 23, 2019 / PowerBand Solutions Inc. (TSXV: PBX) (OTC...
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[{"type":"text","content":"\nPowerBand Executes Unit Purchase Agreement to Acquire MUSA Auto Finance - A Leading FinTech Auto Lease Finance Company in the United StatesVANCOUVER, BC / ACCESSWIRE / July 23, 2019 / PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (Frankfurt: 1ZVA) (\"PowerBand\", “PBX” or the \"Company\"), a leading online automotive auction, remarketing and vehicle acquisition and sales platform in North America, is pleased to announce, that through its wholly-owned subsidiary Powerband Solutions US Inc., and in relation to its news release dated January 23, 2019, that on July 17, 2019 it signed a Unit Purchase Agreement to acquire 60% of MUSA Holdings, LLC, and its subsidiaries, including MUSA Auto Finance, LLC (“MUSA”). The aggregate consideration to be paid by PowerBand is USD$300,000 in cash, and 4,300,000 shares of PBX stock The acquisition will transform PBX into an industry leading FinTech company in the areas of vehicle acquisition, leasing, lending, and auction services. The acquisition is subject to the approval of the TSX Venture Exchange. MUSA Auto FinanceFounded in 2016, MUSA, based in Dallas, Texas, has quickly become a FinTech leader in the auto leasing market in the United States. Its innovative technology platform modernizes the new and pre-owned vehicle leasing experience. As a result of its proprietary technology, MUSA was awarded a contract by Tesla Motors to become a national leasing partner in 2018. During the testing phase with Tesla, that was restricted to California, MUSA developed technology that takes an application, calculates a lease, auto-decisions the application, provides an approval back to dealer partners, and prefills a lease contract accurately in less than eight seconds. Tesla was so impressed with the ease of the platform that they sent USD$50 million in Tesla leasing contracts to MUSA over a weekend and a total of USD$90 million during the test phase. In order to accommodate the Tesla lease program MUSA filled a USD$157.5 million financing facility to capacity in 2018, with an average FICO Score of 739. MUSA’s product demand with Tesla, and dealer partners in 33 states, prompted Robert McDonald, a former Goldman Sachs V.P, to describe MUSA as “one of the fastest growing auto finance companies ever”. MUSA subsequently sold the financing facility, in M...