Montreal, Quebec--(Newsfile Corp. - November 11, 2015) - Peak Positioning Technologies Inc. (TSXV: PKK) (OTC Pink: PKKFF) ("Peak" or the "Company") today announced that it has signed a CAD$4M strategic investment partnership letter of intent with a group of investors (the "Investors") headed by Mr. Jiatao Luo, the majority owner of Banlan Industrial Company Limited ("Banlan").
Under the terms of the proposed agreement, Peak will sell 199M units to the Investors at a price of $0.02 per unit for a total investment of CAD$3.98M. Each unit (a "Unit") will comprise of one common share of Peak and one common share purchase warrant. Each warrant will allow its holder to subscribe to one common share of Peak at a price of $0.05 per share for a period of 24 months following the closing of the transaction between the parties. Following the contemplated transaction, the Investors will collectively own over 50% of Peak's issued and outstanding shares. Pending the Canadian Securities Exchange's (the "CSE") approval, Peak expects the transaction to close by December 15, 2015.
About Banlan Industrial Company Limited:
Banlan Industrial Company Limited ("Banlan") is one of China's largest petrochemical products distribution companies. The company deals primarily in the trade of plastic products such as polypropylene (PP), polyethylene (PE), polystyrene (PS), acrylonitrile-butadiene-styrene copolymer (ABS), polyvinyl chloride (PVC), polyethylene carbonate (PC) and purified terephthalic acid (PTA). Banlan is headquartered in Shanghai's financial center and has its main distribution center strategically located in the heart of the Yangtze River Delta economic region. Banlan distributes over 400,000 tons of plastic based products annually to and on behalf of clients and partners in over 20 countries, including many Fortune 500 industry giants such as ExxonMobil (USA), Mitsubishi Chemical (Japan), LG (Korea), Formosa Plastics (Taiwan) and Dow Chemical (USA).
Banlan had revenues of over 3B RMB (CAD$625M) in 2014 and expects 2015 revenues to exceed 4B RMB (CAD$835M). The company aims to become China's largest petrochemical distribution company and considers a continued investment in technology and the expansion to new international markets as key components to attaining that objective.
Strategic Alliance and Use of Proceeds of Investment
Peak expects to use the majority of the investment proceeds to create a new wholly-owned Chinese subsidiary, which will then develop an online platform to facilitate the processing and settlement of transactions between Banlan and its partners and clients. Peak and the Investors estimate that the new Chinese subsidiary will generate annual revenues equal to about 10% to 15% of Banlan's annual sales starting in as early as 2016.
"We have been looking for strong financial partners who share our vision of giving Canadian investors an opportunity to share in China's most promising tech opportunities, while providing Chinese investors the potential for exceptional growth without the market instability that some Chinese listed companies have experienced recently", commented Johnson Joseph, President and CEO of Peak. "This partnership with Mr. Luo and Banlan's shareholders is truly ideal for Peak. Not only will we now have partners able to finance the opportunities already identified, but they will also help guide us to collectively identify new opportunities. The future couldn't be brighter for Peak right now", added Mr. Joseph.
Timetable and Impact on LongKey Transaction
Prior to closing the transaction with the Investors, Peak expects to first close the second part of its previously announced private placement financing consisting in the sale of 15M units at $0.02 per unit for gross proceeds of $300,000.00.
Peak's executive officers will then travel to Shanghai to meet with the Investors to finalize the details of the proposed transaction. Peak will then resume its negotiations for the pending acquisition of LongKey Hong Kong Limited ("LongKey"). "We want to assure current shareholders that our transaction with LongKey is still a high priority", said Mr. Joseph. "We have kept LongKey informed of our discussions with Mr. Luo every step of the way. They understand that they will now be joining a completely different enterprise with more resources and capabilities than prior to the agreement reached today. This is why the agreement with Banlan's shareholders needs to be closed first before a deal can be finalized for the acquisition of LongKey", concluded Mr. Joseph.
Peak will provide a timetable and reveal the final terms of the LongKey transaction after the Banlan transaction has closed.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. 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 fintech, e-commerce and cloud-computing. Peak provides its shareholders access to the world's fastest growing economy by giving them the opportunity to participate in these high-growth sectors in partnership with some of the most reputable and high profile institutions. For more information: http://www.peakpositioning.com
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
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