MONTREAL, QUEBEC – (NEWSFILE – June 18, 2019) – Peak Positioning Technologies Inc. (CSE: PKK) (“Peak” or the “Company”) today provided operational updates on its Asia Synergy Financial Capital (“ASFC”) and Asia Synergy Credit Solutions (“ASCS”) subsidiaries, and announced its plans to accelerate growth through acquisition and regional expansion of its service offering.
As of May 31, 2019, ASFC had a total of 1,127 loans outstanding worth a combined $21.7M, earning an average annual interest rate of 17.1%. Also as of that date, ASCS was servicing loans worth a combined $16.5M issued to 228 SMEs by 4 lending institution clients, one of which is the Wuxi Rural Commercial Bank (“WRCB”).
Unlike its relationships with some other lending institution clients, which go back a few years, before Wenyi Financial Services Co. Ltd. (“Wenyi”) transferred its operations to ASCS, ASCS’ relationship with WRCB started in March 2019 when ASCS officially began servicing loans on behalf of WRCB. Since then, only a handful of WRCB loans have been serviced while ASCS gets more familiar with WRCB’s lending criteria and lending practices.
“The WRCB is essentially entrusting a portion of its commercial lending activities to ASCS”, commented Mr. Jiangang Qiu, CEO of ASCS. “We both agree that it is very important for us to take the time to familiarize ourselves with each other’s respective operating practices before we can increase the rate of transactions to the same level we have with the clients that we’ve been working with for the past few years. So far, most of the potential clients who fit the qualification criteria we’ve used in the past, have unfortunately failed to meet WRCB’s specific requirements. So we’ve been collaborating to find common ground and have made significant progress, which has led to a few more loans currently in the works. The good news is that we have a common goal for the total value of loans we would like to service in 2019 and are committed to working together towards the achievement of that goal”, concluded Mr. Qiu.
In summary, as of the end of May 2019, Peak’s ASFC, ASCS and ASDS subsidiaries were collectively working with seven (7) lending institutions and one (1) insurance company, providing loans and financial services worth a combined $38.2M to a total of 1,355 SMEs, with no occurrences of loan defaults reported by either ASFC or ASCS.
Growth through Strategic, Accretive Acquisitions and Regional Expansion
Peak also announced that it is working on the implementation of a strategic acquisition program that will accelerate the Company’s growth and considerably shorten its path to profitability. Following the acquisition of Wenyi’s operations in January 2019, the Company was presented with multiple similar acquisition opportunities. The Company is in the process of implementing a program to acquire profitable companies with affinities with its current group of subsidiaries.
Some particulars of the program include that acquisition targets must meet certain minimum criteria for revenue and profitability, must contribute a certain expertise to the Peak Group and must operate in strategically identified geographic locations that would allow the Peak Group to expand its service offerings. Peak common shares to be issued as part of any and all acquisitions in 2019 will be issued at a minimum price of $0.10 per share.
“We’ve experienced organic growth over the past four quarters with the arrival of ASFC and most recently, ASCS and certainly expect that growth to continue”, commented Mr. Johnson Joseph, President and CEO of Peak. “We now have a great opportunity to accelerate that growth by acquiring a number of smaller companies operating in our space. These companies are already profitable and recognize that they would greatly benefit from our technology and expertise and that together our group could become a force in the commercial lending space in China. This growth-by-acquisition strategy will not only accelerate our path to profitability but will make it easier for our group of companies in China to partner with larger financial institutions, insurance companies and other industry participants”, concluded Mr. Joseph.
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 promising companies and assets in some of the fastest-growing tech sectors in China, including fintech, e-commerce and cloud-computing. 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. For more information: http://www.peakpositioning.com
|For more information, please contact:|
|CHF Capital Markets||Peak Positioning Technologies Inc.||Twitter: @PeakPositioning|
|Cathy Hume, CEO||Johnson Joseph, President and CEO||Facebook: @peakpositioning|
|416-868-1079 ext.: 231||514-340-7775 ext.: 501||LinkedIn: Peak Positioning|
|firstname.lastname@example.orgemail@example.com||YouTube: Peak Positioning|
Forward-Looking Statements / Information:
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