JAKARTA (TheInsiderStories) – KinerjaPay Corp., (OTCQB: KPAY), a digital payment and e-commerce platform, receives a bank guarantee of US$30 million this week to fund its subsidiary, PT Kinerja Sukses Gemilang (KFUND) lending operation, the company said on Monday (01/27).
The guarantee is a crucial step in activating its $25 million credit facility, which will allow the mobile payment solutions company to draw down $22.5 million over the next three months, it said.
The company received a transmission from the Bank of China scheduling the transfer for January 29. The final transfer, an MT-760, will be sent on behalf of Infinity Venture Capital Pte Ltd after the banks reopen following the Chinese New Year holiday break, the company said.
On January 22, Infinity Venture Capital Pte Ltd, a Singaporean based corporation owned by Indonesian investor, executed a $200 million subscription agreement for a series of convertible preferred which converts into equity at $1.80/share with a 7 percent annual dividend.
This convertible preferred has no anti-dilution rights. Upon receipt of the first $22.5 million, the company will deliver the same value of the convertible preferred series mentioned above. It is Infinity’s intention to deliver the remaining $177.5 million in the same manner, as fast as the company’s bank will increase the credit facility to lend on a non-recourse basis versus these guarantees.
“We are excited to finally conclude our negotiation with our Investor to receive the bank guarantee that we need to begin the first equity round under the credit line process,” CEO Edwin Ng said in a statement.
“We have gone through extensive education to finally reach our goal of using these bank guarantees to fund our KFUND lending operations,” he adds.
KinerjaPay also plans to use proceeds from the investment to pay off its convertible debt and advance a previously-announced stock buyback program.
“We are gratified that Infinity believes enough in KPAY’s e-commerce and lending platform such that they committed equity at a substantial premium to our currently traded stock price,” Ng said. “They agree we have a bright future.”
KinerjaPay is also awaiting another bank guarantee from Gabriel Capital Ltd, although it has had trouble breaking up its commitment into guarantees smaller than $100 million at a time, Ng said.
Jakarta-based KinerjaPay is a micropayments and microloans business offering digital payments and an e-wallet system. The company has a target of reaching 25,000 loans per month down the road to achieving a minimum $5 million market size on a monthly turnover to turn profitable.
Written by Lexy Nantu, Email: email@example.com