MONTREAL, QUEBEC – (NEWSFILE – March 30, 2017) – Peak Positioning Technologies Inc. (CSE:
PKK) (“Peak” or the “Company”) today announced that the Company has signed an agreement with
Cubeler Inc. (“Cubeler”) for the exclusive rights to the Cubeler (www.cubeler.com) commercial lending
platform in China.
Cubeler is a fintech platform that matches any business looking for credit or financing with a variety of
lenders and financial institutions. Business owners simply take a few minutes to sign up their businesses
on the platform, while Cubeler’s lending partners simply enter their lending criteria, rules and conditions in
their respective Cubeler accounts. Cubeler then periodically reads financial data coming from the
businesses’ accounting software and uses a proprietary analytics engine to match each business with
those financial institutions whose lending criteria the business’ data matches. The end result is that each
business and each lender can log on to their Cubeler accounts to review their respective pre-qualified
financing matches. The business owners are not only able to see their maximum pre-qualified credit and
financing offers, but are able to compare their offers and select the offers that best suit their needs
whenever they’re ready to act on them.
Cubeler supports any type of business and any type of lender, including banks, credit unions, factoring
companies, asset based lenders and a wide range of alternative lenders. The variety of lenders on the
Cubeler platform means that registered businesses have access to a complete portfolio of credit
products, including lines of credit, term loans, merchant cash advances, equipment financings, business
expansion and renovation loans, working capital loans and much more.
By allowing businesses to simply register and let Cubeler do all the work of bringing pre-qualified credit
offers to them, Cubeler eliminates the need for business owners to look for credit, and to worry about
whether or not their businesses would be approved if they were to apply for credit. By the same token,
thanks to the power of analytics, matching their credit criteria with businesses that perfectly fit their profile,
financial institutions and other lenders can also sit back and let Cubeler bring them their ideal commercial
loan candidates. Cubeler uses technology to make commercial lending efficient, cost-effective and
painless for both lenders and businesses.
“Cubeler can be compared to a dating service for lenders and businesses, commented Johnson Joseph,
President and CEO of Peak. “We all know how successful dating websites are at using analytics to create
matches. Well, Cubeler does the same thing for businesses and lenders. From what we know about
commercial lending in China, and our Chinese partners would agree, Cubeler has a unique concept that
is almost tailor made for China. You have over 50M small and medium size enterprises and thousands of
lenders trying to determine on a painstakingly slow, non-automated case by case basis, whether or not to
proceed with a commercial lending transaction. Cubeler can change all of that and have a major impact
on the commercial lending industry in China. That’s why we’re so excited about the potential of this
platform, and believe it will be a great complement to what we’re already doing in China with the Gold
River platform”, concluded Mr. Joseph.
Cubeler currently allows both businesses and lenders to register on the platform for free and charges the
registered businesses a service fee for each accepted credit offer on the platform. Cubeler’s revenues are
also derived from targeted advertisements and market research data. Peak plans to sublicense the rights
to the platform to its newly created Chinese subsidiary, Asia Synergy Data Solution (“ASDS”), while
making a slight adjustment to the Cubeler revenue model when it brings the platform to China. Rather
than offering free registration to both lenders and businesses, the Company’s commercialization plans for
the platform in China will still be completely free for lenders, but will call for businesses to pay an upfront
annual registration fee equivalent to approximately CA$100 instead of charging a service fee for accepted
offers.
The rights granted to Peak under the terms of the 10-year agreement will allow Peak to use, modify,
sublicense, and market the platform, as well as to develop and distribute new product and services
derived from the platform. According to the terms of the agreement, Cubeler will provide Peak with
technical, sales and marketing support over a 10-month period, for which Peak will pay Cubeler a total of
$250,000. As compensation for the exclusive license granted to Peak by Cubeler, Peak will pay Cubeler a
royalty fee representing between 10% and 5%, on a declining scale, of the gross revenues generated by
the platform in China, where gross revenues are defined as the gross amount recognized as income on
Peak’s books in connection with the sale of products, services and fees charged through the platform,
less deductions for value added or any similar taxes with respect to such products, services and fees.
The Company plans to publish a presentation with more details on ASDS’ business and revenue model in
the coming weeks. 2017 revenue guidance will be adjusted in light of today’s announced transaction in
due course.
Pursuant to Policy 7 of the Canadian Securities Exchange (the “CSE”) and Multilateral Instrument 61-101
respecting protection of minority security holders in special transactions (“MI 61-101”), the transaction
between Peak and Cubeler constitutes a “related party transaction” as certain directors of Peak (the
“Related Parties”) are shareholders of Cubeler. In reviewing the requirements for a formal valuation of the
transaction under MI 61-101, Peak has determined that the exemption set out in subsection 5.5 (b) of MI
61-101 is applicable since Peak is listed on the CSE. In addition, subsection 5.7(a) of MI 61-101 provides
that a transaction with an aggregate consideration, insofar as it involves the Related Parties, that does
not exceed 25% of the market capitalization of the issuer, which is the case for Peak and the transaction
in question, is also exempt from the minority shareholder approval requirement. Peak did not file a
material change report 21 days prior to the closing of the transaction since no assurances could be given
at that time that the transaction would be completed.
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 high-growth-potential companies and assets in some of the
fastest growing tech sectors in China, including Fintech, e-commerce and cloud-computing. Peak
provides its shareholders with exceptional growth potential by giving them access to the fastest growing
sectors of the world’s fastest growing economy. For more information: http://www.peakpositioning.com
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.
Contact information:
Cathy Hume, CEO
CHF Capital Markets
Phone: 416-868-1079 ext.: 231
Email: [email protected]
Or
Henry Wong, Account Executive
NAI Interactive Ltd.
Phone: 604-488-8878
Email: [email protected]
Or
Johnson Joseph, President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Email: [email protected]
