Peak Positioning Technologies closes $12M private placement

Peak Positioning Technologies Inc.



News Release

Peak Closes $12M Oversubscribed Private Placement to Launch Financial Services Subsidiary

Montreal, Quebec–(Newsfile Corp. – December 18, 2017) – Peak Positioning Technologies Inc. (CSE: PKK) (“Peak” or the “Company”) today announced that it has closed a $12M private placement financing, the proceeds of which will primarily be used to acquire a majority stake in a joint venture financial services subsidiary named Asia Synergy Financial Capital (“ASFC”).

Peak had originally planned to raise a total of $10M by selling 1,000 units at a price of $10,000 per unit, but instead, due to higher than expected demand for the units, the Company has placed a total of 1,200 units for gross proceeds of $12M. Each unit sold (a “Unit”) is comprised of a $10,000 face value, 2-year maturity, 8% annual interest secured debenture plus 200,000 common share purchase warrants. It should be noted that of the 240M warrants included as part of the Units, 49M were newly issued to account for the oversubscription of the Units. Investors who have purchased the Units may, at any time prior to the maturity date of the debentures, surrender part or all of the amount invested in the debentures to exercise their warrants and purchase common shares of the Company at a price of $0.05 per share. The Units contain a “forced warrant conversion” feature under which 50% of the face value of the debentures will automatically be surrendered to exercise 50% of the warrants if the Company’s common shares trade at $0.15 or more for 3 consecutive trading days, and 100% of the face value of the debentures will automatically be surrendered to exercise 100% of the warrants if the Company’s common shares trade at $0.20 or more for 3 consecutive trading days.

Peak will invest $10.2M of the proceeds of the financing to combine with a $9.8M investment from its joint venture partner Jiu Dong Limited (“Jiu Dong”), for a total investment of $20M by the partners to launch ASFC’s operations. ASFC will focus on providing financial services, such as loans and purchase order financing, to registered platform users on the Company’s Cubeler and Gold River fintech platforms in China. Peak’s $10.2M investment in ASFC will give the Company a 51% ownership position in ASFC while Jiu Dong’s $9.8M investment will give it a 49% stake in the financial services subsidiary.

Peak plans to use a portion of the surplus proceeds of the financing to explore possibilities in which its fintech platforms could be enhanced through the implementation of machine learning and blockchain related technologies and to conduct a study on a potential upcoming initial coin offering (ICO).

About the Cubeler Platform:

Cubeler is a commercial lending platform that matches any business looking for credit with a variety of lenders. Cubeler periodically reads financial data coming from the registered businesses’ accounting software, analyses several data points and calculates a series of financial ratios to determine how well the business is performing. Those data points and ratios are then compared to Cubeler’s registered lenders’ lending criterial and the resulting matches are shown to the lenders and the businesses, much like the way a dating website would show its members their compatible matches.

About the Gold River Platform:

Gold River is a product procurement platform for raw materials that go into the making of plastic products and for certain metals such as copper and aluminum. In addition to allowing them to place orders for metals and raw materials, Gold River allows the platform’s registered users to have a portion of a purchase order or an entire purchase order placed on the platform financed.

About Peak Positioning Technologies Inc.:

Peak Positioning Technologies Inc. is an IT portfolio management company whose mission is to assemble, finance and manage a portfolio of high-growth-potential companies and assets in some of the fastest growing tech sectors in China, including Fintech, e-commerce and cloud-computing. Peak provides its shareholders with exceptional growth potential by giving them access to the fastest growing sectors of the world’s fastest growing economy. For more information: http://www.peakpositioning.com

Contact information:

Cathy Hume
CEO
CHF Capital Markets
Phone: 416-868-1079 ext.: 231
Email: cathy@chfir.com

Or

Johnson Joseph
President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Email: investors@peakpositioning.com