MONTREAL, QUEBEC -- (Marketwired) -- 05/13/13 -- Peak Positioning Technologies Inc. ("Peak" or the "Company") (TSX VENTURE: PKK) today announced that on April 30, 2013 it closed a CAD$100,000 non-brokered bridge financing consisting in the issuance of 900,000 common shares at $0.05 per share for gross proceeds of CAD$45,000 and CAD$55,000 in short-term promissory notes, for which the Company also issued 220,000 in bonus common shares (the "Financing"). The securities issued pursuant to the Financing are subject to a hold period expiring four (4) months and one day from the date of closing. Peak intends to use the proceeds of the Financing to help cover some of the expenses related to its recently announced proposed acquisition of LongKey Hong Kong Limited ("LongKey").
Pursuant to Policy 5.9 of the TSXV and Multilateral Instrument 61-101 Respecting protection of minority security holders in special transactions ("MI 61-101"), the Financing constitutes a "related party transaction" as certain directors and officers of Peak (the "Related Parties") subscribed to shares and promissory notes. In reviewing the applicable valuation requirements under MI 61-101, Peak has determined that the exemption set out in subsection 5.5 (a) of MI 61-101 is applicable since the aggregate consideration to be paid by the Related Parties does not exceed 25% of the market capitalization of Peak at the date hereof. In addition, subsection 5.7(a) provides that a transaction meeting such criteria is also exempt from the minority shareholder approval requirement. The board of directors of Peak has unanimously approved the Financing. Peak has not filed a material change report 21 days prior to the closing of the Financing as participation of insiders had not been established at that time.
A finder's fee consisting of a cash payment equal to 8% of the gross proceeds raised applicable to CAD$20,000 of the total amount raised will be payable to eligible persons in connection with the Financing. No fees will be paid in connection with subscribers which are deemed Related Parties.
Peak also announced today that it has given a mandate to US-based Newfield Partners LLC to raise between CAD$250,000 and CAD$500,000 in additional financing.
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, 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. While 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. For more information: www.peakpositioning.com.
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.
Peak Positioning Technologies Inc.
President and CEO
514-340-7775 ext.: 501
Most Popular Stories
- Chobani Counters Competition With Expanded Lineup
- Automakers Turn to China to Fuel Sales Growth
- Pope Francis, Huge Crowd Joyously Celebrate Easter
- GM Boosting China Production Capacity
- GOP Making Bold Play for Oregon Senate Seat
- Delay in Ferry Evacuation Puzzles Maritime Experts
- Report: Iran VP Says Row Over Reactor Resolved
- NASA's Space Station Robonaut Finally Getting Legs
- Confusion, Anger as Sunken Ferry's Relatives Wait
- Iran Denounces U.S. Ruling to Sell Property