Business
Peak Announces Plans to Now Acquire 100% of LongKey
Montreal, Quebec--(Newsfile Corp. - October 16, 2015) - Peak Positioning Technologies Inc. (TS...
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[{"type":"text","content":"Peak Announces Plans to Now Acquire 100% of LongKeyMontreal, Quebec--(Newsfile Corp. - October 16, 2015) - Peak Positioning Technologies Inc. (TSXV: PKK) (OTC Pink: PKKFF) (\"Peak\" or the \"Company\") today announced its plans to acquire 100% of the issued and outstanding shares of LongKey Hong Kong Limited (\"LongKey\") instead of the 51% interest in LongKey originally announced.Today's announcement was made possible in part by the Company's decision to migrate from the TSX Venture Exchange (the \"TSXV\") to the Canadian Securities Exchange (the \"CSE\"), which gives Peak the flexibility it needs to re-structure its transaction with LongKey.\"Considering the value that Peak is getting with the acquisition of LongKey, it's only fitting that LongKey's shareholders be adequately compensated with the number of Peak shares that they would be receiving in exchange of their LongKey shares\", commented Johnson Joseph, President and CEO of Peak. \"Now that Peak will be trading on the CSE, we'll have the flexibility to issue a number of shares to LongKey's shareholders to be able to immediately acquire 100% of the company, which has always been our objective from the very beginning\", added Mr. Joseph.Less Cash Required for Acquisition and OperationsUnder the terms of the existing agreement between Peak and LongKey, Peak is to issued 82,000,000 Peak shares to LongKey's shareholders and contribute $1.6M to LongKey's working capital to help grow its financial services line of business. In order to meet its working capital obligations towards LongKey, Peak announced a private placement financing consisting in the issuance of a maximum of 160,000,000 units at $0.025 per unit for gross proceeds of up to $4M. Each unit (a \"Unit\") to be comprised of one (1) common share and one (1) common share purchase warrant, each warrant allowing its holder to subscribe to one (1) common share at a price of $0.04 for a period of 12 months following the close of the private placement.Between today and the date on which the terms of the private placement financing were originally announced in June 2015, Peak and LongKey have been collaborating to help transition LongKey's financial services client setup process to a self-registration process to dramatically reduce, if not eliminate, the client setup costs. The result of those efforts is that it is now esti...