MONTREAL, QC / ACCESSWIRE / December 1, 2015 / Peak Positioning Technologies Inc. announced that it has signed a definitive CAD$4M strategic investment partnership with the shareholders of Banlan Industrial Company Limited ("Banlan"), headed by Banlan founder and Chairman, Mr. Jiatao Luo (the "Banlan Partners").

Investment Partnership

Under the terms of the executed agreement between the parties and pending approval of the Canadian Securities Exchange (the "CSE"), the Banlan Partners will initially invest CAD$3.98M in the form of a private placement financing of 199M units at a price of CAD$0.02 per unit (the "Banlan Private Placement"). Each unit (a "Unit") is comprised of one common share of Peak and one common share purchase warrant. Each warrant will allow its holder to subscribe to one common share of Peak at a price of CAD$0.05 per share for a period of 24 months following the closing of the Banlan Private Placement.

The investment partnership between the parties is expected to be a long-term strategic alliance whereby Peak will serve as an investment vehicle used by the Banlan Partners to finance the development of a revolutionary web-based platform for the Chinese plastics industry and take advantage of high-growth project opportunities in China's IT sector. Following the initial investment, whereby they will own 51% of Peak's outstanding common shares, the Banlan Partners will have a right of first refusal on all future financings to be conducted by the Company.

Peak has submitted the necessary documents to the CSE for review and approval of closing of the Banlan Private Placement. Given the magnitude of the investment, Peak expects to close the Banlan Private Placement on or prior to January 31, 2016 to provide the Banlan Partners with enough time to complete the necessary steps to allow for the funds to flow from China to Canada. Until the Banlan Private Placement closes, the Banlan Partners have agreed to advance the sum of CAD$100,000 to the Company by December 5, 2015 so as not to delay certain business objectives agreed to by the parties.

Investment Use of Proceeds and Chinese Operations

Peak will use the majority of the initial CAD$4M investment proceeds to first establish a wholly-owned Chinese subsidiary ("Peak China"), which will then develop the aforementioned web-based platform for the Chinese plastics industry. To that end, during their recent travels to China to meet with the Banlan Partners, Peak's executive officers signed a letter of intent with the municipal government of the Wuxi New District of Jiangsu province for the establishment of Peak China's head office in the region.

Peak China will take over some of the business transactions currently being conducted by Banlan, which involve the buying, selling, warehousing and distribution of raw materials in the Chinese plastics industry. In addition to those activities, Peak China will also develop and manage China's first bulk plastics trading e-commerce platform, combining trading, transaction processing, warehousing, logistics and financing (the "Plastic Bank Platform"). The concept behind the Plastic Bank Platform comes from Mr. Luo's vision to digitize and bring the entire plastics trading process online, from order placement and transaction processing to distribution and logistics. This will allow Peak China to capture valuable data and to use analytics to provide customized financial services, including loans and purchase order financing, to China's plastics industry participants.

Peak China expects to begin its operations by the end of the first quarter of 2016, shortly followed by the launch of the Plastic Bank Platform.

"We are absolutely delighted with the signing of this agreement", commented Mr. Luo. "We share a common vision with Peak to use analytics to provide customized financial services to businesses in China, starting with those operating in the plastics industry. We are very excited to become Peak shareholders to contribute to the realization of that vision", concluded Mr. Luo.

About Banlan Industrial Company Limited

With over 1,000 employees and annual sales of 4B RMB (CAD$835M), Banlan Industrial Company Limited ("Banlan") is one of China's largest private petrochemical products distribution companies, both in terms of personnel and sales. The company deals primarily in the trade of plastic products such as polypropylene (PP), polyethylene (PE), polystyrene (PS), acrylonitrile - butadiene - styrene copolymer (ABS), polyvinyl chloride (PVC), polyethylene carbonate (PC) and purified terephthalic acid (PTA). Banlan is headquartered in Shanghai's financial center and has its main distribution center strategically located in the heart of the Yangtze River Delta economic region. Banlan distributes over 400,000 tons of plastic based products annually to and on behalf of clients and partners in over 20 countries, including many Fortune 500 industry giants such as ExxonMobil (USA), Mitsubishi Chemical (Japan), LG (Korea), Formosa Plastics (Taiwan) and Dow Chemical (USA).

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 access to the world's fastest growing economy by giving them the opportunity to participate in these high-growth sectors in partnership with some of the most reputable and high profile institutions. For more information: http://www.peakpositioning.com

(Article by Baystreet.ca. URL:http://www.baystreet.ca/viewarticle.aspx?id=434231)

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