- Fintech provider Peak Positioning Technologies (PKK) has completed a non-brokered private placement after raising C$500,000
- During the placement, the company sold 1.25 million units to a strategic institutional investor at 40 cents per unit
- Peak Positioning Technologies will use the proceeds to fund a potential joint venture with Beijing Youxiangtong Group (BYG)
- The company plans to help Beijing Dianjing Company (BDC), a BYG subsidiary, to finance distribution of a popular speaker
- Peak Positioning Technologies (PKK) is up 8.79 per cent and is currently trading for 50 cents per share
Fintech provider Peak Positioning Technologies (PKK) has completed a non-brokered private placement after raising C$500,000.
The company’s successful half-a-million-dollar financing was conducted with a strategic institutional investor. During the placement, Peak Positioning sold 1.25 million of its units to the investor, at a price of 40 cents per unit.
Each unit contained one common share in the company, as well as one common share purchase warrant. One whole warrant allows the holder to purchase one common share in Peak Positioning for 40 cents, within 24 months of the offering’s closing date.
The company paid certain qualified individuals a cash commission amounting to eight per cent of the offering’s gross proceeds. The individuals also received a number of broker warrants, equal to eight per cent of offering’s gross proceeds.
Each broker warrant allows its holder to purchase one common share in Peak Positioning for 40 cents, within 24 months of the offering’s closing date.
All common shares, warrants, and broker warrants issued in relation to the offering are subject to a hold period of four months and one day, from the offering’s closing date.
Peak Positioning Technologies plans to use the proceeds to fund a potential joint venture with Beijing Youxiangtong Group (BYG). One of BYG’s subsidiaries, Beijing Dianjing Company (BDC), is a national wholesale distributor of consumer electronics.
Notably, BDC is the exclusive national distributor of Baidu’s popular Xiaodu smart speaker, which Peak Positioning intends to help finance the distribution of. The company has also been in talks with BYG about bringing Peak Positioning’s Lending Hub commercial lending solutions to BDC’s online retail clients.
An agreement for such an arrangement is likely to result in the formation of a joint venture. The proceeds of the company’s private placement will help Peak Positioning meet the obligations for creating a joint venture company in the near future.
Peak Positioning Technologies (PKK) is up 8.79 per cent and is trading at 50 cents per share, as of 10:10am EDT.