Business
PowerBand Solutions Inc. Announces:
Closing of a First Tranche of its Previously Announced Private Placement with Investor Grou...
About this update from Ameritrust Financial Technologies Inc.
[{"type":"text","content":"PowerBand Solutions Inc. Announces:Closing of a First Tranche of its Previously Announced Private Placement with Investor Group Led by J. Bryan Hunt Jr., Joe Poulin and Pierre Lassonde;Loan Agreement;Shares for Debt Transaction;Management and Board Changes; andPotential New Control PersonTORONTO, ON / ACCESSWIRE / June 22, 2022 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB: PWWBF) (\"PowerBand\" \"PBX\" or the \"Company\"), a comprehensive e-commerce solution transforming the online experience to sell, trade, lease, and finance vehicles, announces the closing of a first tranche (the \"First Tranche\") of its previously announced private placement financing (the \"Financing\"), announced on May 10, 2022. PowerBand today issued 62,037,560 units (the \"Units\") at a subscription price of CAD $0.30 per unit for gross proceeds of CAD $18,611,268 (approximately US $14,330,676). Each Unit consists of one common share of the Company and one warrant, each warrant exercisable for one additional common share at an exercise price of CAD $0.40 for a period of 60 months.PowerBand is pleased to announce that it has attracted a third strategic shareholder, Pierre Lassonde, to the previously disclosed strategic investor group of J. Bryan Hunt Jr. and Joe Poulin, further bolstering shareholder value. Mr. Lassonde has extensive experience investing in early-stage growth companies and will provide significant value to the Company as it continues on its growth plan.The Company intends that the aggregate size of the Financing will be for gross proceeds of CAD$23,806,308 (approximately US $18,330,852). The Company expects that a second tranche closing for the balance of the subscription proceeds will be completed in approximately 10 calendar days, subject to regulatory approval.Proceeds from the Financing will be used for general working capital purposes, product development, marketing and advertising and other strategic growth initiatives, the repayment of certain previously disclosed debt owing to Kelly Jennings as outlined below, and transaction fees. The securities issued pursuant to the Financing will be subject to a four-month hold period from their date of issuance.Loan and Shares for DebtOn May 4, 2022, D2D Auto Auction LLC, the joint venture owned 50% by the Company and 50% by J Bryan Hunt Jr. advanced US$3,519,711 to the Company as a bridge lo...