MONTREAL, QUEBEC – (NEWSFILE – December 3, 2019) – Peak Positioning Technologies Inc. (CSE: PKK) (“Peak” or the “Company”) today announced that it has acquired the popular Jinxiaoer loan brokerage and commission paying platform from Jinxiaoer Technology Ltd.
Jinxiaoer (which translates to “Financial Waiter”) is a patented platform specifically designed for loan brokerage companies and their sales representatives. Jinxiaoer gives loan brokerage companies and their sales reps the ability to earn commissions on loan leads that they generate that are not suited for their businesses and to receive leads suited to their businesses from non-affiliated sales reps registered on the platform. For instance, a rep associated with a broker that specializes in supply-chain loans may refer a commercial mortgage lead to the platform and earn a commission on the loan. Reps are also eligible to obtain commissions on commissions earned by other reps that they refer to the platform. So although the Jinxiaoer app can be downloaded from most Chinese app stores (see here), it is mostly shared from one sales rep to another by scanning the app’s QR code directly from a rep’s mobile phone.
In 2018, Jinxiaoer generated loan requests totalling 15B RMB (approximately $3B CAD) from over 40,000 registered sales reps affiliated with 2,700 loan brokerage companies located in 31 cities (see list below), making Jinxiaoer one of the most popular, and fastest growing, lead-generating and loan-commission paying apps in all of China.
Revenue stemming from the Jinxiaoer platform is expected to come to Peak in the form of monthly registration fees paid by the reps, annual franchise fees paid by the brokerage companies (the Jinxiaoer Service Centers), and transactional referral fees paid by the banks and lenders benefiting from the platform’s leads. Those referral fees will range from 0.025% to 1.00% of the value of each loan resulting from a lead generated by the platform. Given Jinxiaoer’s expected impact on its operations, the Company plans to update its financial forecasts for 2020 and 2021 by January 31, 2020.
“This acquisition is a major achievement for us and should benefit every one of our subsidiaries,” commented Johnson Joseph, President and CEO of Peak. “It’s not only expected to bring considerably more business to the Peak Group, but also gives us an opportunity to expand our services throughout China by leveraging the Jinxiaoer brand (see some co-branded Jinxiaoer partners here) and Jinxiaoer’s relationship with sales reps and loan brokerage companies across the country. I want to congratulate our Chief Executive in China, Liang Qiu, for the exceptional work that he has done over the better part of the past year to make this acquisition possible and for finding the ideal complement to our Cubeler Lending Hub platform” added Mr. Joseph.
Under the terms of the purchase agreement, Peak has agreed to pay $600,000 in cash and $800,000 in Peak common shares over a period of 18 months for a 70% equity stake in Jinxiaoer.
“By joining the Peak Group and integrating Jinxiaoer to the Cubeler Lending Hub, I strongly believe that we have an opportunity to become the largest commercial lending platform in all of China specifically catering to the needs of the country’s loan brokers and their sales reps,” said Jinxiaoer’s Founder and CEO Tiegang Li.
List of Cities with Affiliated Jinxiaoer Sales Reps and Brokerage Companies:
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies 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.peakpositioning.com
|For more information, please contact:|
|CHF Capital Markets||Peak Positioning Technologies Inc.||Twitter: @PeakPositioning|
|Cathy Hume, CEO||Johnson Joseph, President and CEO||Facebook: @peakpositioning|
|416-868-1079 ext.: 231||514-340-7775 ext.: 501||LinkedIn: Peak Positioning|
|email@example.comfirstname.lastname@example.org||YouTube: Peak Positioning|
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.