PowerBand Solutions has implemented additional cost restructuring measures to better align its operations to support changes in the automotive lease management industry. As previously announced, the Company is allocating all growth capital and resources to its used and new vehicle leasing platform, DrivrzFinancial, as management believes it represents the highest return to shareholders. While the Company continues to work on increasing profitable lease originations and to raise additional funding lines to generate lease originations in other automotive segments, such as commercial and fleet, it has further optimized its cost structure through the reduction of personnel across all of its business units. The Company will also be implementing additional cost-saving initiatives, including moving its head office operations from Burlington, Ontario to its DrivrzFinancial office in Addison, Texas. The annualized reduction in expenses from today’s announcement is expected to be approximately CAD $3 million. This is in addition to previously disclosed annualized expense reductions of approximately CAD $8 million.
Published first on TheFly
