Agoracom Blog

Peak Fintech $ Pays Back $12m of 2017 Debentures $ $ $ $

Posted by AGORACOM at 9:04 AM on Thursday, December 24th, 2020
  • PEAK Provides Update On 2017 Secured Debentures and Exercise of Warrants

Secured debentures issued back in December, 2017, originally totaling $12-million and of which a balance of $3.27-million was still outstanding as on Oct. 1, 2020, have totally been paid back by Peak Fintech Group Inc. 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 $12-million. Each unit sold comprised a $10,000 face value, two-year maturity, 8-per-cent 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 Dec. 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 50 cents per share. In summary, $11.94-million 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 $2.5-million in cash from the exercise of warrants unrelated to the debentures between Oct. 1, 2020, and Dec. 23, 2020.

About Peak Fintech Group Inc.

Peak Fintech 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.

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