Peak Positioning Technologies (CSE: PKK, Forum) advanced toward its mandate when the company announced today that its strategic partnership with Mr. Jiang Wang, Chairman of the Chinese conglomerate Zhonghai Wanyue Group has now been formalized with the transfer of $3.98 million from Mr. Wang to Peak.
According to the news release, the transfer of funds concludes a non-brokered private placement financing whereby Mr. Wang and his group acquired 199 million units of Peak at a price of $0.02 per unit for gross proceeds of $3.98 million.
Each unit issued contains one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of Peak at a price of $0.05 for a period of 24 months following the closing date.
As a result of the transaction, Mr. Wang and his group own 51% of Peak's issued and outstanding common shares. The closure of the offering was the last remaining element to cement the strategic partnership between Zhonghai Wanyue Group and Peak.
Mr. Wang commented, “I want to thank my fellow Peak shareholders for their patience because closing this transaction took much longer than any of us expected. The transaction with Peak was unfortunately affected by other transactions that I had committed to prior to my partnership agreement with Peak, and by newly passed regulations affecting large segments of the Chinese financial services industry.”
Then he added, “I want to personally thank Peak's management for their professionalism and understanding throughout this process. We all learned quite a bit about each other during that time, which will undoubtedly serve us in the future. I'm very excited that we are now officially partners with Peak and look forward to working with Peak management to build a bridge of opportunities between China and Canada to the benefit of Peak shareholders in Asia and North America.”
Peak President and CEO, Johnson Joseph, concluded, “This partnership is without a doubt the most important milestone in our company's brief history. We've been talking for a while now about giving our shareholders access to some of the best opportunities in some of China's hottest tech sectors. We now have a partner that not only shares our vision, but has the experience, track record and resources to help make it happen. This definitely marks a new and exciting era for Peak and all of its stakeholders.”
Peak Positioning Technologies was in the news recently when the Montreal, Quebec-based company filed Q1 2016 results and operating highlights three days ago.
Shares were up 18.18% to $0.065 per share.
Currently there are 192.60m outstanding shares with a market cap of $10.59 million.
FULL DISCLOSURE: Peak Positioning is a Stockhouse Publishing client.