MONTREAL, QUEBEC — (Marketwired) — 05/31/13 — Peak Positioning Technologies Inc. (“Peak”) (TSX VENTURE: PKK) today announced its financial results and reviewed highlights for the three-month period ended March 31, 2013.
Highlights:
Larger than anticipated investments in China created liquidity issues for the Company in the fourth quarter of 2012. Therefore the Company-s efforts in the first three months of fiscal 2013 were largely devoted to arranging for short and longer-term financing. Four short-term financings have been completed as of the date of this release for gross proceeds of $450,000. Peak also announced on May 13, 2013 that it has given a mandate to US-based Newfield Partners LLC to raise between $250,000 and $500,000 in additional financing.
From an operating standpoint, Peak-s strategy of developing its business in China in partnership with LongKey-Hong Kong Ltd. (“LongKey”) continued to progress in the first three months of the year. Net revenues from royalties are growing steadily from quarter to quarter and the growth is expected to accelerate as a result of LongKey-s supply contract with China Unicom. On April 17, 2013, the Company announced that an agreement had been reached on the terms whereby Peak will acquire LongKey. Peak-s acquisition of LongKey is one of the conditions to complete the previously announced US$6 million financing agreement with Essence International Capital.
“Peak-s main focus in the coming quarters will be to complete the acquisition of LongKey and close the related US$6 million financing”, said Johnson Joseph, President and Chief Executive Officer. “Peak and LongKey will then be in a position to open sales support offices in several provinces and expand the rollout of AiNi on China Unicom 3G devices. All of this in turn, is expected to have a significant positive impact on the Company-s revenues in 2013”, he stated.
First Quarter Financial Results Summary
Peak generated $195,515 in revenue from royalties in the three months ended March 31, 2013 compared to $513 in the same period of 2012.
Expenses for the first quarter amounted to $274,607 compared to $507,625 in the same period of 2012. The first quarter expenses include R&D expenditures of $98,900 compared to $196,109 in the same period of 2012. These costs are before deducting investment tax credits, which are accounted for on an annual basis only.
The net loss for the three month period ending March 31, 2013 was $79,458 compared to $507,112 in the same period of 2012.
Full details of the Company-s first quarter 2013 financial results can be found in the Unaudited Consolidated Financial Statements and Management-s Discussion and Analysis (MD&A) for the three-month periods ended March 31, 2013 and 2012, which are available at .
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. (TSX VENTURE: PKK) is a Canadian software developer for smartphones and other mobile computing devices, conducting business primarily in China and North America. In association with its partner, LongKey-Hong Kong Ltd (LongKey), the Company has developed a suite of applications for mobile devices that includes: cloud-based e-mail, calendar and contacts synchronization, automated device configuration, and HomeWavea mobility security. LongKey markets the applications in China through its partnerships with major Chinese telecommunication companies and banks. Peak plans to similarly market the applications for its own account in North America.
Forward-Looking Statements / Information
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including “anticipate”, “believe”, “could”, “expect”, “intend”, “may”, “plan”, “potential”, “project”, “seek”, “should”, “will”, “would” and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Jeremy Hill
Account Manager
CHF Investor Relations
416-868-1079 x238
Johnson Joseph
President and CEO
Peak Positioning Technologies Inc.
514-340-7775 ext.: 501
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