Montreal, Quebec— December 24, 2020 – Peak Fintech Group Inc. (CSE: PKK) (OTCQX: PKKFF) (“Peak” or the “Company”), an innovative Fintech service provider to the Chinese commercial lending sector, today announced that secured debentures issued back in December 2017, originally totalling $12M and of which a balance of $3.27M was still outstanding as out October 1st, 2020 (the “Debentures”), has now totally been paid back by the Company or converted into common shares of the Company.
The Debentures were issued in the course of a private placement financing where the Company sold a total of 1,200 units for gross proceeds of $12M. Each unit sold (a “Unit”) was comprised of a $10,000 face value, 2-year maturity, 8% annual interest secured debenture plus 20,000 common share purchase warrants. The maturity was extended by another year in 2019 and the Debentures were set to mature on December 16, 2020. Investors who purchased the Units could, at any time prior to the maturity date of the Debentures, surrender part or all of the amount invested in the Debentures to exercise their warrants and purchase common shares of the Company at a price of $0.50 per share. In summary, $11,940,000 of the Debentures was surrendered to exercise warrants and the Company paid back $60,000 in cash to Investors.
In addition to the warrants exercised as a result of the surrender of the Debentures, the Company received over $2.5M in cash from the exercise of warrants unrelated to the Debentures between October 1st, 2020 and December 23, 2020.
About Peak Fintech Group Inc.:
Peak Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) subsidiaries operating in China’s commercial lending industry. Peak’s subsidiaries use technology, analytics and artificial intelligence to create an ecosystem of lenders, borrowers and other participants in China’s commercial lending space where lending operations are conducted rapidly, safely, efficiently and with the utmost transparency. For more information: http://www.peakfintechgroup.com