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Montreal, Quebec--(Newsfile Corp. - November 5, 2015) - Peak Positioning Technologies Inc. (TSXV: PKK) (OTC Pink: PKKFF) ("Peak" or the "Company") today announced it has closed a non-brokered private placement financing of CAD$500,000 (the "Private Placement").
The Private Placement is the first tranche of a total financing of CAD$800,000 that the Company will use in part for working capital purposes and in part to continue its strategy to eliminate debt from its balance sheet prior to its acquisition of LongKey Hong Kong Limited ("LongKey"). Back in September, Peak eliminated almost CAD$1,000,000 in debt from its books to make the Company a more attractive vehicle for Canadian investors to participate in China's fast growing tech sectors, and for Chinese investors looking for a Canadian publicly-listed company operating in China's most dynamic tech sectors.
The Company's debt reduction strategy began back in May following discussions with potential Chinese institutional investment partners. These potential investors were looking for ways to take advantage of China's hottest tech opportunities with the liquidity that public markets provide, but without the volatility that China's public markets have become known for.
"No other investors are better placed to see and understand the opportunities in China's tech sectors than Chinese-based investors", commented Johnson Joseph, President and CEO of Peak. "So we are having discussions with potential Chinese institutional investment partners interested in partnering with us to help fuel LongKey's growth. During those discussions, these potential partners have indicated that any reduction in Peak's overall debt would enable them to take a significant equity position in the Company. So we put together a debt reduction strategy in anticipation that we'll be able to reach an agreement with one of these potential investment partners just prior to the closing of the LongKey transaction", concluded Mr. Joseph.
Peak also credits its ability to potentially reach a partnership agreement with a Chinese-based institutional investors on its recent migration to the Canadian Securities Exchange (the "CSE"), which does not limit the ownership of foreign investors in the Company's capital.
About the Private Placement
The Private Placement consisted in the sale of 25,003,750 units at a price of CAD$0.02 per unit for gross proceeds of CAD$500,075. Each unit (a "Unit") sold as part of the Private Placement consists of one (1) common share and one (1) one common share purchase warrant. Each common share purchase warrant entitles its holder to purchase one common share of Peak, at the price of CAD$0.025, for a twelve (12) month period following the closing date.
The securities issued pursuant to the Private Placement are subject to a hold period expiring four (4) months and one day from the date of closing.
The second tranche of CAD$300,000 of the total CAD$800,000 financing, offered under the same terms and conditions as the Private Placement, is currently available to qualified and existing Peak investors. Those interested in participating are invited send an email to the Company to express their interest at: investors@peakpositioning.com.
Pursuant to Policy 5.9 of the TSXV and Multilateral Instrument 61-101 Respecting protection of minority security holders in special transactions ("MI 61-101"), the Private Placement constitutes a "related party transaction" as certain directors and officers of Peak (the "Related Parties") subscribed to securities. In reviewing the applicable valuation requirements under MI 61-101, Peak has determined that the exemption set out in subsection 5.5 (a) of MI 61-101 is applicable since the aggregate consideration to be paid by the Related Parties does not exceed 25% of the market capitalization of Peak at the date hereof. In addition, subsection 5.7(a) provides that a transaction meeting such criteria is also exempt from the minority shareholder approval requirement. The board of directors of Peak has unanimously approved the Private Placement. Peak has not filed a material change report 21 days prior to the closing of the Financing as participation of insiders had not been established at that time.
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 e-commerce, cloud-computing and mobile development. Peak provides its shareholders access to the world's fastest growing economy by giving them the opportunity to participate in these high-growth sectors in partnership with some of the most reputable and high profile institutions. For more information: http://www.peakpositioning.com
For more information:
Cathy Hume
CEO
CHF Investor Relations
Phone: 416-868-1079 ext.: 231
Email: cathy@chfir.com
Or
Carl Desjardins
Managing Partner
Paradox Public Relations Inc.
Phone: 514-341-0408
Email: carldesjardins@paradox-pr.ca
Or
Johnson Joseph
President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Email: investors@peakpositioning.com