MONTREAL, QUEBEC — (Marketwired) — 09/19/13 — Peak Positioning Technologies Inc. (“Peak” or the “Company”) (TSX VENTURE: PKK) today announced that it has signed a $3 million debt financing term sheet with a Toronto-based institutional investment firm (the “Investor”).
Subject to satisfactory due diligence by the Investor, Peak and the Investor have agreed to enter into a 3 year loan agreement for a principal amount of up to $3 million (the “Agreement”). The loan bears an interest rate of 8% per annum. Interest payments for the first 12 months are payable in advance at the time of the loan disbursement and monthly thereafter. The principal amount is payable at the end of the term and the loan is secured by the aggregate of Peak-s tangible and intangible assets. The Agreement also calls for the Investor to receive, subject to TSX Venture approval, 500,000 shares of Peak at the closing of the transaction, plus the equivalent of 10% of the principal amount of the loan in bonus shares of Peak at a deemed price per share equal to the average closing price of Peak-s shares for the 10 trading days immediately preceding the closing date of the transaction.
“This transaction, when it closes, will provide us with the financial resources needed to achieve our remaining key objectives for 2013. These are to complete the LongKey acquisition, launch AiNi as a pre-installed platform on China Unicom smart devices in Guangdong, and enter into an agreement with a North American network operator for the distribution of AiNi in North America”, said Johnson Joseph, President and CEO of Peak. “By achieving these objectives and finishing the year on a positive note, we-ll be in excellent position to have a strong start to the 2014 fiscal year”, he went on to say.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. (TSX VENTURE: PKK), is a Canadian software developer for mobile smart devices, and application provider to mobile network operators (MNO) worldwide. In association with its partner, LongKey-Hong Kong Ltd, the company has developed the AiNi Mobile Cloud platform. AiNi is an enhanced version of the mobile smart device O/S equally designed for the benefit of consumers and MNOs, and marketed to MNOs as a solution to increase and maintain their mobile subscriber bases. AiNi comes with a suite of standard applications and features and offers MNOs the possibility to have additional custom applications and features developed and integrated to the platform. For more information: .
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.
The TSX Venture Exchange has in no way passed upon the merits of this transaction and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange, Inc. nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this press release.
Contacts:
Jeanny So
Director of Operations
CHF Investor Relations
416-868-1079 ext.: 225
Johnson Joseph
President and CEO
Peak Positioning Technologies Inc.
514-340-7775 ext.: 501
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