MONTREAL, QUEBEC – (NEWSFILE – May 24, 2018) – Peak Positioning Technologies Inc. (CSE: PKK) (“Peak” or the “Company”) today announced that its newly established financial services subsidiary, Asia Synergy Financial Capital (“ASFC”), has officially started its operations by conducting a series of transactions whereby it extended credit to qualified small and medium-sized enterprises located in the cities of Wuxi and Changzhou.
Within its first week of operations, ASFC extended loans to a total of 428 SMEs for a combined amount of 37M RMB (approximately $7.4M CAD). The loans, none of which exceed 100,000 RMB (approximately $20,000 CAD), range in term from 12 to 24 months and will net ASFC an average annual interest rate of 10%. The borrowers make monthly repayments which include both interest and capital until the borrowed amounts are completely repaid. This repayment structure allows ASFC to reinvest all or part of the monthly repayment installments as they are received, which optimizes the company’s operational cash flow. The fact that ASFC was able to conduct these transactions so quickly following its creation is a testimony to how much work and preparation was done by the Company’s Chinese-based management team prior to and leading up to the creation of ASFC.
The credit criteria used by ASFC to qualify the SMEs for the loans extended were established with the collaboration of Mr. Zhang Tao, formerly of Temasek Holdings, a financial institution known to have one of the lowest loan default rates in Asia, and Mr. Zhuo Changsheng of Jiu Dong Limited, which boasts a proven loan default track record of less then 2% over the past decade. Mr. Zhang and Mr. Zhuo are now both members of ASFC’s management team and are responsible for monitoring and, if need be, adjusting ASFC’s credit criteria to help registered SMEs on the Company’s Cubeler platform qualify for credit from ASFC.
These initial transactions conducted by ASFC will not only be monitored internally to assess the effectiveness of ASFC’s credit criteria, but the end results will also be shared with a handful of external parties, including other financial institutions and the Wuxi Municipal Financial Affairs Office, who are interested in Cubeler’s ability to safely and effectively qualify SMEs for credit.
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
CHF Capital Markets
Phone: 416-868-1079 ext.: 231
President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Forward-Looking Statements / Information:
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