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PowerBand Solutions (TSXV:PBX) announces $25.7M private placement

Technology, The Market Online Deal Room
TSXV:PBX
10 May 2022 15:15 (EDT)

Source: LinkedIn

PowerBand Solutions (PBX) has announced a private placement for gross proceeds of $25.7 million.

The placement is with an investment vehicle controlled by J. Bryan Hunt Jr. and JPK Capital, an investment vehicle wholly owned by Joe Poulin. Upon closing of the Private Placement, Mr. Hunt will assume the role of Chairman of the Board and Mr. Poulin the role of Vice-Chairman.

PowerBand will issue 85.8 million units at $0.30 per common share. Each unit will consist of one common share and one common share purchase warrant. Each warrant will be exercisable for one common share at an exercise price of $0.40 for five years after closing the transaction.

Proceeds are expected to be used to repay certain indebtednessfund growth initiatives, and for general corporate and working capital purposes.

PowerBand may pay finder’s fees or commissions in connection with the private placement.

The private placement is expected to close by May 20th.

Darrin Swenson, incoming President and CEO of PowerBand, commented,

“Powerband has tremendous potential with this strengthened leadership team and sponsorship and is at a critical inflection point as it commercializes its disruptive automotive fintech solutions… Our vision for the company is a growing and sustainable business model that is self-funded with internally generated cash flow, with several financing strategies available to the company.”

PowerBand Solutions Inc. (PBX) is up 32.50 per cent trading at $0.26 per share as of 3:05 p.m. ET.

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