News Montreal, Quebec--(Newsfile Corp. - May 19, 2017) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company") today provided the following updates on the Company's management's recent travels to Asia.
Given the importance that having its own financial institution is expected to play in the Company's future plans, the Company's senior executives recently traveled to Asia with the objective of coming back to Canada with a detailed action plan that would culminate in having that financial institution conduct its first transaction as quickly as possible. To that end, the Company's executives first met with its legal and financial advisors in Hong Kong, Shanghai and Wuxi to discuss how to best structure the ownership of Asia Synergy Financial Capital ("ASFC") to ensure the greatest flexibility for potential investors while ensuring that ASFC's profits could easily flow back to those investors outside of China. Following the advisor meetings, where it was determined that it would be most beneficial to establish ASFC in the city of Wuxi rather than in Shanghai, the Company's executives met with the Wuxi Municipal Financial Affairs Office (WMFAO) to discuss the potential establishment of ASFC in Wuxi. The WMFAO is the government agency responsible for issuing licenses and for financial oversight of all financial institutions established in Wuxi. The WMFAO was able to provide the Company's executives with step-by-step instructions for the establishment of ASFC, as well as confirm that ASFC would be able to conduct activities in all of China and that ASFC's profits could be repatriated to its shareholders outside of China.
In addition to meeting with its advisors and the WMFAO, the Company's executives also met with potential investment partners for the creation ASFC as well as potential lending partners who would lend along with ASFC on the Company's fintech platform to be operated by Asia Synergy Data Solutions ("ASDS"). The meetings with potential ASFC investment partners naturally centered on ownership negotiations and future profit sharing.
"We had a very productive trip", commented Johnson Joseph, President and CEO of Peak. "Our main objective for the trip was to come back with a concrete and validated action plan to be able to start our financial services activities in China as soon as possible. And for that, we can say, mission accomplished. Meeting the WMFAO and validating that our proposed ownership structure would allow for the repatriation of ASFC's profits outside of China set the tone for the rest of the trip", continued Mr. Joseph. "Knowing exactly how ASFC would be structured and that sending profits outside of China wouldn't be an issue, we were able to have more effective discussions based on facts with our potential partners. We had very productive discussions with potential investment partners and a number of potential platform lending partners who clearly saw how they would benefit from being registered on the Cubeler platform. We would expect ASDS to have agreements in place with a few of these lending partners in the coming weeks", concluded Mr. Joseph.
Not only did the Company's executives return to Canada with an action plan for ASFC, but they were also able to validate several assumptions related to ASFC's business and revenue model to be able to finalize ASFC's financial projections, which the Company plans to publish by the end of May, 2017.
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