Montreal, Quebec--(Newsfile Corp. - April 29, 2015) - Peak Positioning Technologies Inc. (TSXV: PKK) (PINK SHEETS: PKKFF) ("Peak" or the "Company") today announced its financial results and reviewed highlights for the year ended December 31, 2014.
Financial Highlights:
- Operating revenues of $51,465
- $1,256,830 of new capital raised in combination of debt and equity
- Net loss of $1,247,540 for the year
Operating Highlights:
- Acquisition of minority stake in LongKey Hong Kong Limited ("LongKey")
- Signing of share exchange agreement to acquire controlling majority stake in LongKey
- Acquisition of Quickable.com marketplace
- Company shares quoted in US on OTC Markets Group's "Pink Sheets"
2014 marked a year in which Peak transitioned from a company focussed on software development to one more focussed on acquiring, financing and managing high-growth-potential IT companies and assets. As a result of the transition, the Company will significantly reduce its future operational expenses and be able to allocate more resources to its acquisition objectives. "We had to put some promising projects on the back burner in 2014 in the course of the Company's transition phase", commented Johnson Joseph, President and CEO of Peak. "The actions taken during the year should be viewed as the foundations for the Company moving forward. We'll look to build on those foundations in 2015", concluded Mr. Joseph.
Outlook for 2015:
The acquisition and subsequent growth of LongKey is expected to remain the focal point of Peak's activities in 2015. The Company will work to satisfy all of the conditions and requirements to obtain the TSX Venture Exchange's approval in order to complete the acquisition of an initial majority interest in LongKey by the end of the second quarter of 2015.
Peak's operations in 2015 will focus primarily on ensuring that its subsidiary portfolio companies are well managed and have the resources they need to grow into successful and profitable companies. Although Peak does not intend to be involved in the day-to-day operations of LongKey, it is expected that an estimated 80% of its time in 2015 will be spent on activities related to LongKey's growth, and to help it acquire 100% of LongKey by the end of 2015.
To help meet its needs for capital in 2015 and beyond, the Company is of the opinion that it needs access the US capital markets by positioning itself as an attractive investment opportunity for potential US investors. In 2014, the Company began to make strides toward achieving that objective by having its common shares quoted in the US on the OTC Markets Group's "Pink Sheet", which makes it possible for US investors to obtain a quote of Peak's stock, but still very difficult to trade the stock. The Company plans to build on that initiative in 2015, by pursuing a full listing on the OTC Markets Group's OTCQX marketplace. This will allow US investors to easily buy and sell Peak's stock through the institutional, retail, or online broker-dealer of their choice, making their trading experience of Peak's stock nearly identical to that of trading any NYSE or NASDAQ listed company's stock. This would make Peak's stock a much more attractive investment option for potential US investors than it was in 2014.
Peak's main objectives for 2015 can be summarized as follows:
- Close acquisition of initial 51% majority interest in LongKey
- Position the Company to have greater access to the US capital markets by listing the Company's common shares in the US on the OTC Market Group's OTCQX marketplace
- Raise $10M to $15M in capital throughout the year and acquire 100% of LongKey
- Implement the monetization strategy of the Quickable.com marketplace
Fiscal 2014 financial results summary:
The Company generated $51,465 in consulting revenue for the year ended December 31, 2014 compared to $34,270 in 2013. Expenses for fiscal 2014 amounted to $1,381,080, compared to $1,150,107 in 2013. The 2014 figure is about the same as the previous year if one-time elements such as the impairment of goodwill of $400,000 and the gain on revaluation of contingent compensation of $130,000 are excluded. Employee salaries and management fees went down from $550,502 in 2013 to $247,083 in 2014 largely due to the Company's decision to temporary layoff its mobile development team in the 2nd quarter of 2014. But the savings were offset by increases in other items such as subcontracting, consulting fees and interest expenses related to the Company's financing activities in 2014.
The net loss for the year was $1,247,540 compared to $830,800 in 2013. Full details of the Company's 2014 financial results can be found in the Audited Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the years ended December 31, 2014 and 2013, which are available at www.sedar.com.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. ("Peak"), (TSX VENTURE: PKK) (PINK SHEETS: PKKFF), 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 with the opportunity to participate in the fastest growing economic sectors of the world's fastest growing economy, in partnership with some of the most reputable and high-profile institutions in those sectors. For more information: http://www.peakpositioning.com
Forward-Looking Statements / Information
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange, Inc. nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this news release.
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