This is a vital development prior to Activating its $25 Million Credit Facility
JAKARTA, Indonesia, Jan. 27, 2020 /PRNewswire/ — The Company’s representative confirms today that its local bank in Jakarta, Indonesia, China Construction Bank, Jakarta will receive a SWIFT transmission of a $30 million, Bank of China, MT-799 within this week currently being scheduled on January 29th, 2020. The MT-799 is a pre-advice transmission alerting KinerjaPay Corp’s bank to accept a final transmission of the actual Bank of China MT-760 bank guarantee. The terms of our non-recourse, $25 million credit facility allows the Company to draw down a net $22.5 million evenly over three months. The first drawdown should be within days of the receipt of the MT-760. We expect to receive the final MT-760 within a short period after the banks reopen after the Chinese New Year holiday break. The MT-799 will be sent on behalf of Infinity Venture Capital Pte. Ltd., a Singaporean based corporation owned by Indonesian investors. On January 22, 2020, Infinity executed a $200 million subscription agreement for a series of convertible preferred which converts into equity at $1.80/share with a 7% 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 non-recourse basis versus these guarantees.
Mr. Edwin W. Ng, CEO of KinerjaPay Corp. (OTCQB: KPAY) said: “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. We have gone through an extensive education to finally reach our goal of using these bank guarantees to fund our KFUND lending operations, as well as other uses that we have previously disclosed. We are still awaiting Gabriel Capital Ltd.’s right sized bank guarantee. They have been having trouble breaking up their commitment into guarantees smaller than $100 million at a time. We are also in advanced discussions with several other groups to send MT-760 guarantees acceptable to our bank. We are gratified that Infinity believes enough in KPAY’s ecommerce and lending platform such that they committed equity at a substantial premium to our currently traded stock price. They agree we have a bright future! With the proceeds of the investment, we intend to pay off our convertible debt, which has been depressing the stock price, as well as advance our previously announced stock buy back program. We believe the Company’s year-long attempt to raise substantial equity is nearing its end.”
KinerjaPay enables consumers to “Pay, Play and Buy” through its secure web portal and mobile applications. Based in Indonesia, the Company provides an easy and convenient payment solution while shopping online at its marketplace platform. With its current omni-channel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance and direct transfer to anyone at their convenience. KinerjaPay is also planning to launch other eCommerce verticals such as travel market, delivery services, and online gaming in the near future. The Company’s services are available through its mobile applications and on its website at www.kinerjapay.com.
Notice Regarding Forward-Looking Statements
This press release may contain forward-looking statements, about KPAY’s expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. In addition, from time to time, KPAY or its representatives have made or may make forward-looking statements, orally or in writing.
Forward-looking statements can be identified by the use of forward-looking words such as “believe,” “expect,” “intend,” “plan,” “may,” “should” or “anticipate” or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by KPAY with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of KPAY’s authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause KPAY’s actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause KPAY’s actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements, including, but not limited to, the factors summarized in KPAY ‘s filings with the SEC. In addition, KPAY operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. KPAY does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise. Please see the risk factors associated with an investment in our securities which are included in our Annual Report on Form 10-K as filed with the SEC on April 20, 2018 and most recently in our Registration Statement on Form S-1/A filed with the SEC on December 21, 2018, pursuant to which we are offering 300,000 Shares of 11% Series C Cumulative Redeemable Perpetual Preferred Stock at $25.00 Per Share.
For more information, please visit our website http://www.kinerjapay.co. There you will find access to all of our past press releases and SEC filings regarding the activities discussed in this release.
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SOURCE KinerjaPay Corp.