Investing in the technology sector invites a myriad of both complex factors and simple questions. Where does one find real investment value and opportunity? How do you determine the long-term growth strategy of the company? When is the right time to jump in on the stock? Who are the management driving the company’s strategic and tactical engine? And, perhaps most importantly, what truly sets these guys apart from the competition?
Peak Fintech Group(PKK) (
CSE.PKK,
OTC: PKKFF,
Forum) is a very well-positioned, Montreal-based financial technology company that assembles, finances, and manages a portfolio of companies and assets in tech sectors in China. But what makes the Company different is that there are no competitors in this market, due to their unique, established subsidiaries already doing business in Mainland China.
Currently, PKK is the parent company of a group of innovative financial technology subsidiaries that use technology, analytics, and AI to create an ecosystem of lenders, borrowers, and other participants in China’s commercial lending space where lending operations are conducted safely, efficiently and with the utmost transparency.
Through Peak Fintech’s assembly of three distinctive subsidiaries – Asia Synergy Technologies (AST), Asia Synergy Data Solutions (ASDS), and Asia Synergy Financial Capital (ASFC)
– the Company has developed a three-tiered approach “that allows North American investors to participate in the digitization of China’s economy through the adoption of technologies such as Fintech, Blockchain, cloud computing and others.”
But most importantly for investors, the Company is targeting China’s underserved and credit-strapped small to medium size businesses with complete financial resources to successfully manage and grow their businesses – a massive potential market that is measured in the hundreds of billions of dollars.
And Peak Fintech has access to capital. A lot of capital.
On January 21, 2019, the Company announced that its newly created Asia Synergy Credit Solutions (ASCS) subsidiary – which recently took over the credit outsourcing operations of Wenyi Financial Services Co. Ltd. – had entered into a partnership agreement with Wuxi Union SME Guarantee Co. Ltd. (WU), where in turn the Company would guarantee bank loans to small and medium-sized enterprises (SME) serviced by ASCS for an aggregate amount of up to CAD$1 billion.
That’s a lot of money to lend. And now, the company has access to new capital to accelerate its growth verticals to expand its services inside and outside of China, and for working capital and general corporate purposes.
Investor Update: In the News
On July 7th, Peak Fintech Group closed an oversubscribed short-form prospectus
financing for gross proceeds of CDN$52.6 million. The public offering of 26,300,000 units of the Company at a price per unit of $2.00 added up to aggregate gross proceeds exceeding the $50 million-plus raise. As mentioned earlier, the Company will be listed on Nasdaq in the next few weeks.
And as Peak CEO Johnson Joseph said:
"This financing marks the beginning of a new era for Peak. It unlocks so many new opportunities for us in terms of expansion, partnerships, and new revenue streams. Having secured the financial resources to fuel our short-term projects, we can now confidently complete and release our revenue and income forecasts for the next couple of years."
Retail and institutional investors plus private equity funds know a good thing when the see it – a lending business model that’s distinctive and works. And it is responsible, good governance that is helping thousands of Chinese ‘mom & pop’ tech businesses get a chance to grow in prosper in the world’s fastest growing economy.
And as the stock chart below clearly indicates, investors have taken note with a robust
700%-plus increase in share valuation over the past year and a market cap approaching $240 million.
(12 month CSE.PKK stock chart July 2020 – July 2021. Click image to link to chart)
Johnson Joseph, President & CEO of Peak Fintech Group, talked to Stockhouse Editorial about the Company’s long-term strategic initiative into the China and their exclusive multiple funding platform:
“We recognized back in early 2017 that there was a need in China for commercial lending to be more efficient. There was a big demand from small and medium-sized businesses to gain access to funding. At the same time, we were aware of this platform in Canada called Cubeler and we felt it would be a very good fit for the Chinese commercial space. What the platform does it is uses analytics to match the right small businesses with the right lenders. In a nutshell it saves small businesses from knocking on several doors trying to find funding and it also saves lenders / banks to do research to find the right businesses to lend to.”
In short, a win-win for both lenders and borrowers.
“Our three operating subsidiaries each leverage the latest technologies to provide services aimed at making B2B transactions more efficient and providing small and medium size businesses in general with the financial resources they need to successfully manage and grow their businesses.”
About Peak Fintech Group
About Peak Fintech Group is a publicly-traded IT portfolio management company, headquartered in Montreal Canada, whose common shares trade on the Canadian Securities Exchange. The Company manages a portfolio of companies and assets in some of the fastest-growing tech sectors in China, including fintech, e-commerce and cloud-computing.
Through their Chinese subsidiaries, Peak provides a bridge for North American investors who wish to participate in the continued digitization of China’s industrial sectors through the latest advancements in technology such as fintech, blockchain, cloud computing and others.
Their three operating subsidiaries each leverage the latest technologies providing services aimed at making B2B transactions more efficient and providing small and medium-size businesses in general with the financial resources they need to successfully manage and grow their businesses.
In Closing
Those with an eye on an innovative, well-positioned fintech company that has every indication of still being an undervalued asset servicing an underserved economy with over 1.5 billion consumers, Peak Fintech Group looks to be a very interesting play for small cap retail investors…now more than ever.
For more information, visit
peakfintechgroup.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.