PowerBand Completes Acquisition of LeadSource Canada
Vancouver, British Columbia--(Newsfile Corp. - September 4, 2018) - PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (FSE: 1ZVA) ("PowerBand" or the "Company"), a leading online auction and remarketing platform to buy and sell used vehicles, is pleased to announce, further to its news release of July 10, 2018, the closing of its acquisition (the "Transaction") of 1070879 B.C. Ltd., operating as LeadSource Canada ("LeadSource"), pursuant to a definitive share purchase agreement.
Based in Kelowna, B.C., LeadSource is a next-generation automotive private sale event marketing company. LeadSource integrates its proprietary consumer conquest methodology with the latest in advanced database mining techniques to harvest qualified, in-equity sales leads through its customer contact centre. LeadSource provides training to the dealership's staff and orchestrates all aspects of the multiday private sales events ("Events"), resulting in a dynamic and transparent customer experience that is unlike any other current offering in the marketplace.
The Transaction was completed by the purchase of all outstanding securities of LeadSource by PowerBand in consideration of:
- $60,000 cash;
- an additional $20,000 cash in the event PowerBand completes 100 Events within 18 months from closing of the Transaction; and
- an additional $20,000 cash in the event PowerBand completes an additional 50 Events (for an aggregate of 150 Events) within the same 18 month period.
In order to trigger either $20,000 milestone payment, the Events completed by PowerBand must meet strict income and margin qualifying requirements.
Furthermore, concurrent with and as a condition of the completion of the Transaction, PowerBand is pleased to announce the engagement of Paul Mountney, founding principal and President of LeadSource, as General Manager of PowerBand, directing LeadSource's Event business as part of the larger PowerBand team. In addition to his base salary, commissions and standard benefits, Mr. Mountney may earn up to 37,500 common shares of PowerBand each year based on the strong performance of the newly integrated LeadSource Event business.
Kelly Jennings, Chief Executive Officer of PowerBand, stated: "We are very pleased to have completed the acquisition of LeadSource, and welcome Paul to his new role with PowerBand. Paul and PowerBand's team have developed an extremely efficient and effective national platform for lead generation and Event execution, which will benefit substantially from the implementation of PowerBand's instant LiveNet Auction system. Customers looking to trade in their used vehicle at the Events will be able to watch live bids for their vehicle appear on the dealership's showroom display, providing the confidence that the industry's top buyers are providing them with the best available, real-time, price for their trade-in. The acquisition of LeadSource is part of PowerBand's long term plan to provide dealers and consumers with an efficient solution by eliminating unnecessary middlemen from the sales process. We look forward to generating shareholder value through this accretive acquisition".
Paul Mountney, General Manager of PowerBand responsible for Events, stated: "We are thrilled to have completed the Transaction and eagerly anticipate complimenting PowerBand's substantial industry contacts, experience and powerful LiveNet Auction system with our proprietary national targeted Event model."
About PowerBand Solutions Inc.
PowerBand Solutions Inc. is a technology provider listed on the TSX Venture Exchange that is developing solutions for automotive and other industries that drive efficiency and transparency in the marketplace. PowerBand has developed and commercialized a leading-edge online auction platform that increases revenues and profit margins for its automotive dealership, Original Equipment Manufacturer, commercial fleet and rental company customers. PowerBand's remarketing platform, the PowerBand Exchange, incorporates the industry's latest auction technologies, inventory management, market intelligence, and appraisal processes.
For further information, please contact:
Patrick Piette, Investor Relations
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