Peak and GEM Sign CA$5M Share Subscription Facility

Montreal, Quebec--(Newsfile Corp. - June 15, 2017) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company") today announced that it has signed a CA$5M share subscription facility agreement with Global Emerging Markets (www.gemny.com) ("GEM").

Under the terms of the three year agreement, Peak may at any time while the agreement is in effect, send a draw down notice to GEM specifying the number of common shares for which GEM will have an obligation to subscribe. The subscription price per share for the common shares will be 90% of the average trading price of the common shares for the fifteen (15) trading day period immediately following the draw down notice. The draw down process may be repeated as many times as Peak desires during the term of the agreement until the maximum subscription amount of CA$5M has been subscribe to by GEM. Peak issued 14M share purchase warrants to GEM at the signing of the agreement and will issue another 13M warrants along with each of the first 13M shares subscribed by GEM for a total of 27M warrants over the course of the agreement. Each warrant will allow GEM to purchase one common share, for a period of five (5) years from the date of the issuance of the warrant. The warrants issued at the signing of the agreement have an exercise price of $0.12, while the warrants to be issued along with the share subscriptions will have an exercise price equal to the closing price of the shares on the day prior to the day on which the warrants are being issued.

"We're very pleased with the agreement announced today as the first of a series of important steps we'll be taking in the coming weeks and months towards the achievement of our long-term objectives", commented Johnson Joseph, President and CEO of Peak. "We've been approached by a number of institutional investors in recent months with various investment proposals. We took several factors into consideration before making our decision as to which one to go with. GEM's track record, international reputation and what their group can potentially bring to Peak in the future as an investment partner gave their proposal a decided edge over the other proposals we considered. We also found the investment structure very appealing. It's similar to a credit facility in the sense that it allows the Company to control when and at what price to raise capital over the next three years. It also all but guarantees that we will be able to support our subsidiaries, if need be, until they become profitable, which we liken to an insurance policy", Mr. Joseph went on to say.

The Company plans to use some of the proceeds of the share subscription facility to help set up the operations of its upcoming financial services subsidiary, Asia Synergy Financial Capital ("ASFC").

Questions about ASFC Presentation

The Company received several questions about ASFC's recently published executive summary presentation and would like to take this opportunity to address some those questions. The revenue targets shown in the presentation are based on a number of assumptions, including ASFC's capacity to finance transactions on both of the Company's fintech platforms totalling approximately CA$400M in 2017. If ASFC fails to secure the funds to service all of the transactions assumed in the presentation then it is understood that the actual revenues realized by ASFC will be less than the target revenues shown. For instance, the Company expects part of the funds available to ASFC to come in the form of an equity investment to be made in ASFC's parent company, ASC, totalling between CA$50M to CA$100M. If ASFC's ability to provide financial services is limited to, let's say CA$50M, then revenues for 2017 would be closer to $2.6M, $13.5 for 2018, $21.8 for 2019 and $34.5 for 2020. The Company plans to provide updated guidance on target revenues on a quarterly basis starting in Q2 2017. As for where the additional funding to fuel ASFC's operations would come from, the Company expects it to come in the form of a low interest credit facility from one or more Chinese banks.

Many non-bank lenders in China have been very successful with the model of using funds borrowed at relatively low interest rates from Chinese banks to lend to consumers and small businesses at higher rates. Chinese banks have the reputation of being very reluctant to lend to small businesses. These non-bank lenders fill a very important need for small business credit and are therefore an essential part of the Chinese commercial credit industry. Without those lenders filling that critical need, many small and microbusinesses in China wouldn't exist, which is why the Company believes those non-bank lenders to be among the ideal lender partners for the Cubeler platform.

A lender's ability to obtain a credit facility from a Chinese bank depends on how risky the lender's loans are. Considering the types of credit expected to be provided and the built-in collateral on the Gold River platform, and the insurance-backed loans to be provided on the Cubeler platform, the Company is fairly confident in ASFC's ability to secure a low interest credit facility. "We have partners and an onsite management team that have been in the commercial credit space in China for years and we'll obviously rely on their experience and expertise to make ASFC work", commented Mr. Joseph. "It's no coincidence that the business models for Gold River and Cubeler are both very well positioned to potentially have access to a substantial credit facility. Gold River deals only with well-established reputable manufacturers and distributors, not to mention that the materials traded on the platform are often kept as collateral and released to clients based on payment schedules. So the default risk exposure is negligible. Cubeler's model on the other hand, places a limit on the maximum amount loaned by ASFC per transaction and calls for all credit extended on the platform to be backed by insurance. This also produces virtually no default risk exposure, which the banks find rather attractive", concluded Mr. Joseph.

With regards to whether the figures shown in the presentation are revenue, EBITDA or net income, they are top line revenue targets. The Company has mandated an international financial consulting firm to produce a financial projection model from which the Company's operating subsidiaries' EBITDA and net income could be derived. The Company will publish certain relevant elements of the results of the modeling once available.

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 with exceptional growth potential by giving them access to the fastest growing sectors of the world's fastest growing economy. For more information: http://www.peakpositioning.com

Contact information:

Cathy Hume
CEO
CHF Investor Relations
Phone: 416-868-1079 ext.: 231
Email: cathy@chfir.com

Or

Johnson Joseph
President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Email: investors@peakpositioning.com

About GEM:
Global Emerging Markets (www.gemny.com) was founded in 1991. GEM is a USD 3.4 billion investment group having completed 373 transactions in 70 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world. Each investment vehicle has a different degree of operational control, risk-adjusted return and liquidity profile. Our family of funds and investment vehicles provide GEM and its partners with exposure to: Small-Mid Cap Management Buyouts, Private Investments in Public Equities (PIPEs) and select venture investments. GEM's funds include: CITIC-GEM Fund (matured in December 2015), Kinderhook Industries (GP and LP non-voting stakes), GEM Global Yield Fund LLC SCS, GEM India and VC Bank/GEM Mena Fund (GEM exited both its GP and LP stakes in these funds in 2015 and 2010 respectively).

Contact:

Jonathan Collins
Global Emerging Markets
Phone: 212-582-3400

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.