Montreal, Quebec--(Newsfile Corp. - May 13, 2015) - Peak Positioning Technologies Inc. (TSXV: PKK) (PINKSHEETS: PKKFF) ("Peak" or the "Company") today announced that it has signed a letter of engagement with Euro Pacific Canada Inc. ("EPC") to have EPC act as lead agent, on a best efforts basis, for the private placement financing (the "Private Placement") to be closed concurrent to Peak's pending acquisition of a 51% stake in LongKey Hong Kong Limited ("LongKey")
"We're very excited to start this relationship with EPC not just for what they will bring in the short-run with respect to the Private Placement, but also for what they can potentially bring to Peak as an international financial partner with a presence in the US and the Asia Pacific Rim", said Johnson Joseph, President and CEO of Peak. "Attracting institutional investors, obtaining research coverage on the Company and making it easier for U.S. investors to own the Company's common shares are three very important elements to the Company's future. With today's announcement, we feel we have the right partner to assist us in each of these important areas", concluded Mr. Joseph.
Revised Private Placement Terms
Peak and EPC have agreed that the Private Placement will consist in the sale of units only, and therefore contrary to what was announced in the news release dated May 7, 2015, no debentures will be offered for sale as part of the Private Placement. The Private Placement will consist of the sale of a minimum of 100,000,000 units and a maximum of 140,000,000 at $0.025 per unit for gross proceeds of a minimum of $2,500,000 and a maximum of $3,500,000. Each unit (a "Unit") 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 a price of $0.04, for a period of twenty-four (24) months following the closing date.
Peak will proceed with a 5:1 consolidation of its securities concurrently with the closing of its acquisition of LongKey and the Private Placement. All securities to be issued as part of the Private Placement will be issued on a post-consolidation basis, which means that Private Placement subscribers will receive one common share and one common share purchase warrant for each 5 Units subscribed once the consolidation takes effect at the closing of the Private Placement. Taken on a post-consolidation basis, the Private Placement will result in the sale of a minimum of 20,000,000 and a maximum of 28,000,000 units at a price of $0.125 per unit. Similarly, each issued warrant will give its holder the right to purchase one common share of Peak at a price of $0.20. Closing of the Private Placement is subject to, among others, satisfactory results from EPC's due diligence procedures, completion of the consolidation and of the Company's acquisition of a 51% interest in LongKey. The Company's acquisition of LongKey, the proposed securities consolidation, and the Private Placement are all subject to TSX Venture Exchange (the "TSXV") approval. All securities issued pursuant to the Private Placement, will be subject to a four month and one day hold period from the date of their issuance.
Peak Grants Incentive Stock Options
On May 1, 2015, Peak granted incentive stock options to certain officers, directors and consultants of the Company to acquire a total 6,050,000 common shares at a price of $0.05 per share. Of the stock options granted to officer and directors, 2,600,000 will only vest upon the successful completion of the Company's acquisition of LongKey. Those same 2,600,000 stock options will be forfeited if the closing of the LongKey acquisition fails to occur within a prescribed timeline established by the Company. All other stock options granted to officers and directors of the Company will vest over a two-year period and will be exercisable over a five-year period from the date they were granted. All stock options granted to consultants will vest over a twelve-month period at a rate of 25% every quarter and will be exercisable over a five-year period from the date they were granted.
In addition to the stock options granted to certain officer, directors and consultants, the Company also granted total stock options to acquire 1,000,000 common shares, 500,000 each to CHF Investor Relations and to Paradox Public Relations, at a price of $0.05 for investor relations related services. These stock options will vest over a twelve-month period at a rate of 25% every quarter and will be exercisable over a five-year period from the date they were granted.
All of the stock options granted above will also be subject to the consolidation of Peak's securities to take place at the closing of the Private Placement.
About Euro Pacific Canada Inc.:
Euro Pacific Canada Inc. is a Canadian registered brokerage firm headquartered in Toronto, with offices in Montreal, Vancouver and Tokyo, Japan. Together with its U.S. counterpart, Euro Pacific Capital Inc., which has offices in seven U.S. cities including Los Angeles, New York, and Westport CT, the firm offers an integrated platform of equity research, institutional sales and trading, investment banking, private client services, and manages over $3.5 billion in private client assets. For more information: http://www.europac.ca.
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
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