PowerBand Announces Closing of $12.8M Brokered Private Placement, Including Partial Exercise of the Agents' Option

Toronto, Ontario--(Newsfile Corp. - July 8, 2021) - PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (FSE: 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 it has closed its previously announced private placement offering (the "Offering") for aggregate gross proceeds of $12,775,901. A total of 18,788,090 common shares of the Company (the "Offered Shares") were issued at a price of $0.68 per Offered Share (the "Offering Price"), including the partial exercise of the Agents' option for 1,140,990 Offered Shares. The Offering was carried out by Desjardins Capital Markets and Scotiabank acting as co-bookrunners and co-lead agents (collectively the "Agents").

The Offered Shares will be subject to a four-month and one day hold period under applicable securities laws in Canada. The Company intends to use the net proceeds to increase balance sheet liquidity, accelerate growth from DRIVRZ Financial, and launch DrivrzXchange and DrivrzLane before the end of 2021.

In connection with the Offering, the Agents received a cash commission equal to 6.0% of the gross proceeds raised, other than gross proceeds from sales of Offered Shares made to certain purchasers designated by the Company (the "President's List") for which the Agents received a cash commission equal to 4.0% of such gross proceeds; and compensation warrants (the "Compensation Warrants") equal to 6.0% of the number of Offered Shares sold under the Offering, other than in respect of purchasers on the President's List for which the Agents received Compensation Warrants equal to 4.0% of the number of Offered Shares sold to such purchasers. Each Compensation Warrant is exercisable to acquire one common share of the Company for a period of 24 months following the date of their date of issuance, at the Offering Price.

Management and insiders of the Company subscribed for an aggregate of 1,308,825 Offered Shares for gross proceeds of $890,000. The insider participation is considered a related party transaction within the meaning of Policy 5.9 of the Corporate Finance Manual of the TSX Venture Exchange and Multilateral Instrument 61-101 ("MI 61-101"). The Company is relying on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in respect of such insider participation. Further details of such participation will be included in a material change report to be filed by the Company.

Kelly Jennings, PowerBand CEO, stated, "We are pleased to close this private placement with the support of our agents Desjardins and Scotiabank, and look forward to working with them and our new investors in achieving our vision for the Company's growth."

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

About PowerBand Solutions, Inc.

PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric and non-electric vehicles, on any phone, tablet or PC connected to the internet. PowerBand's transaction platform - being trademarked under "DRIVRZ" - is being made available across North American and global markets.

For further information, please contact:
Kelly Jennings
Chief Executive Officer
E: info@powerbandexchange.com
P: 1-866-768-7653

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Not for distribution to United States newswire services or for dissemination in the United States

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89766

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