Tech provider PowerBand Solutions (TSXV: PBX) (OTCQB: PWWBF) announced Tuesday morning that it has inked a non-binding letter of intent (LOI) to acquire 1070879 B.C. Ltd., a company operating as LeadSource Canada. From its headquarters in Kelowna, British Columbia, LeadSource is a next-generation automotive private sale event marketing company integrating proprietary technology and advanced database mining techniques to build sales leads.
LeadSource is a turnkey solution, training dealership staff and handling each component of multi-day sales events for customers across its expansive network across Canada.
PowerBand is picking LeadSource up for a song, agreeing in the LOI to pay $100,000 for 100% of the company.
The addition dovetails with PowerBand’s operations, including its flagship online auction platform designed to increase sales and profits for car dealerships, OEMs and auto rental companies. "By incorporating PowerBand's instant LiveNet Auction into LeadSource's private sales event platform we believe the company will differentiate itself in the marketplace," said PowerBand chief executive Kelly Jennings in today’s news release.
With the marriage of the technology, customers wanting to trade in their car or truck at a sales event will be able to watch live bids for the vehicle on the dealership’s showroom display.
Per the deal, LeadSource president Paul Mountney will be joining PowerBand. Mountney’s position was not disclosed, but it was announced that his employment agreement will include a stock bonus if certain annual targets are accomplished.
After closing Monday at 24.5 cents, shares of PBX have edged ahead $0.005 following the acquisition news to $0.25 in early Tuesday trading. Since coming public in February and opening trading at $0.30, shares PowerBand has mostly moved sideways, trending between 20 and 30 cents per share.
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