Montreal, Quebec--(Newsfile Corp. - June 29, 2016) - Peak Positioning Technologies Inc. (CSE: PKK) (OTC Pink: PKKFF) ("Peak" or the "Company") today announced that its Chinese subsidiary, Asia Synergy Technologies Ltd. ("AST"), has been registered as an operating entity legally authorized to conduct business in China. AST was registered in Shanghai and has established its head office in the City of Wuxi in the province of Jiangsu.
The announcement marks a major milestone for the Company and clears the path to allow AST to begin to take over some of the plastic raw materials distribution activities of the Zhonghai Wanyue Group's ("ZHWY Group") subsidiaries as per the strategic partnership agreement between Peak and ZHWY Group Chairman, Mr. Jiang Wang.
Although the vast majority of AST's operations are expected to be facilitated by the Gold River Fintech web-based platform, the company is also expected to engage in some offline transactions while Gold River hits its stride. "We started discussions with a handful of clients and suppliers while the company registration process was running its course", commented AST CEO, Mr. Liang Qiu. "Until we get them using the online platform, we'll start with some offline transactions, very similar to the transactions they are currently doing with ZHWY Group subsidiaries, so nothing will change for them in the short run". "We'll eventually have the transactions go through Gold River, but for now, starting with offline transactions will ensure a smooth transition to Gold River and allow AST to generate revenues more quickly", Mr. Qiu went on to say.
More Exercise of Warrants and Conversion of Debentures
Peak also announced that the Company issued 12,000 common shares at a price of $0.05 per share and 7,500,000 common shares at a price of $0.025 as a result of the exercise of common share purchase warrants. The Company also issued 536,220 additional common shares at a price of $0.05 per share as a result of the exercise of the conversion feature of secured convertible debentures.
The announced transactions combine to add $188,100 to the Company's cash flow and remove $26,811's worth of short-term debt from its books.
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