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Executive Summary – July 2016 (An IT Portfolio Management Company)

PKK Executive Summary July 2016

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Page 1: PKK Executive Summary July 2016

Executive Summary – July 2016

(An IT Portfolio Management Company)

Page 2: PKK Executive Summary July 2016

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Canadian Securities Exchange: PKK Pink Sheets: PKKFF

Disclaimer

FORWARD LOOKING STATEMENTS

Apart from historical data, this document

contains information and statements

concerning the future results of Peak

Positioning Technologies Inc. (the

“Corporation” or “Peak”) which should be

considered as prospective and forward-

looking. These statements reflect the

current vision of the Corporation

concerning future events; they are based

on information currently available to the

Corporation and on assumptions which

are considered reasonable. These

prospective statements are subject to

risks, uncertainties and other factors

likely to influence the results,

performance and achievements of the

Corporation such that they could differ

substantially from the results,

performance and achievements

prospective statements of this nature

might imply.

NOTICE

Peak Positioning Technologies Inc.

(“Peak”) acknowledges that meetings

with analysts and major investors play a

key role within its investor relations

programs. However, in all its

communications, Peak, its directors,

management, spokespersons and

employees shall seek to raise awareness

of Peak from information which does not

constitute material undisclosed

information. Pursuant to the applicable

securities laws and Peak’s policies,

whenever selective information from

material undisclosed information is

disclosed during this presentation, the

recipients thereof must keep this

information confidential and avoid to

trade any of Peak’ securities until Peak

issues a press release in regards of this

information.

The Corporation is in no way obliged nor

does it intend to update or revise these

prospective statements on the basis of

new information, future events, etc.

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About Peak Positioning Technologies

Peak Positioning Technologies (“Peak”) is an IT portfolio management company whose goal is to deliver value to its shareholders by assembling a portfolio of high-growth-potential projects and companies in the e-commerce and financial technology (FinTech) spaces in North America and China.

Asset “X”…

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Capital Structure

Peak (Canada)

Asia Synergy Limited (H.K.)

Asia Synergy Holdings (China)

Asia Synergy Technologies

Gold River B2B Fintech

Platform

100%

100%

100%

Company “…”

Capital Structure (as of July 31, 2016)

Shares Outstanding 413,993,564

52 Week High/Low $0.10 / $0.015

Warrants 255,211,100

Options 23,482,000

Fully-diluted 692,686,664

Insider Position* 61.3%

Market Cap $31.0M

* Insider position based on a fully-diluted basis

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Asia Synergy Technologies

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About Asia Synergy Technologies

Chinese-based operating subsidiary of Peak Raw materials trader and distributor Operator of the “Gold River” Fintech platform

Aiming to take advantage of the need to digitize and bring Chinese raw materials trading industry to the Internet age

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Gold River B2B Fintech Platform

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About the Gold River B2B Fintech Platform

Web-based order management, logistics and financial services platform specifically designed for the Chinese raw materials industry

Operated by Asia Synergy Technologies Targeted to buyers and resellers

(distributors) of raw materials Aims to digitize and bring Chinese raw

materials trading industry to the Internet age

Collects and analyses data from platform users to provide several value-added services to the entire raw materials supply chain, including PO financing, term loans and other financial services

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Background for the Gold River B2B Opportunity

Due to production demands, China imports over 2,000 different kinds of industrial raw materials from suppliers all over the world.

Based on official Chinese government reports, there were over 2 million Chinese manufacturers who used raw materials in their day-to-day productions in 2010.

Raw material suppliers normally produce based on confirmed orders (BTO).

Raw material suppliers sale products through large distributors or international traders.

Manufacturers and other users buy raw materials from distributors who either buy their products from larger distributors or directly from local and international suppliers.

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Background for the Gold River B2B Opportunity

Raw Material Users

Most raw material users lack purchasing power to deal directly with raw materials suppliers, so they place orders with large resellers and distributors

Very few web-based B2B materials trading platforms Existing web-based B2B platforms only provide information

exchanging services, so transactions are still done offline No online transaction processing and financial settlement

capabilities leads to long delays to settle transactions Most transactions are based on cash settlement with no credit

terms Very little to no purchase order financing options limit

production capabilities and put strain on raw material users’ cash flows

Raw material users in need of logistics and value-added financial services related to raw material orders

Chinese government led initiative to digitize and bring industry to the Internet age

Raw Material Suppliers

Resellers & Distributors

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Chinese Raw Materials Distribution Overview

Raw Material Users

1 2

3 4

1. Raw material users call distributors and place orders for raw materials

2. Distributors aggregate raw material user orders and place large orders with raw material suppliers

3. Material suppliers ship ordered materials to distributors

4. Distributors distribute ordered materials to raw material users

Raw Material Suppliers

Distributor “A”

Distributor “A”

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Chinese Raw Materials Distribution with Gold River Platform

Raw Material Users

1 2

3 4

1. Raw material users login to their Gold River platform accounts and place orders for raw materials with AST; platform processes, settles or arranges transaction settlement, and offers raw material users value-added services such as order financing and materials warehousing

2. Platform aggregates raw material users orders and AST places large orders with raw material suppliers

3. Material suppliers ship ordered materials to AST 4. AST distributes ordered materials to raw material

users

Raw Material Suppliers

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Gold River – Purchase Order Financing Services

Various Tier1 and Tier2 Banks

Zhonghai Wanyue Financial Partners

Zhonghai Wanyue

$

$

1 2

3

4 5

6

7

1. Raw material user places order with AST on Gold River and selects to have order financed

2. Financing request order details are sent to ZHWY and ZHWY processes request

Raw Material User

3. ZHWY approves request and sends funds to AST, including financing fees portion payable to AST

4. AST places raw materials order with supplier 5. Raw material supplier sends ordered materials to AST 6. AST sends ordered materials to raw material user 7. Raw material user makes financing payments to

ZHWY

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Gold River – Term Loan Services

Various Tier1 and Tier2 Banks

Zhonghai Wanyue Financial Partners

Zhonghai Wanyue

$

$

1 2

3

4

1. Platform user logs on to Gold River and applies for term loan

2. Loan request details are sent to ZHWY and ZHWY processes request

3. ZHWY approves request, sends funds to platform user and loan service fee to AST

4. Platform user makes monthly loan repayments to ZHWY

$ 3

Platform User

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Gold River – Escrow Services

1 1

3

2 7

Raw Material User

1. Raw material user and distributor log on to Gold River and agree to terms of their transaction 2. Raw material user sends funds, including applicable escrow fees, to AST 3. Gold River notifies distributor that the funds have been received and are held in escrow 4. Distributor sends ordered materials to raw material user 5. Raw material user receives, inspects and accepts ordered materials 6. Raw material user notifies Gold River that ordered materials were received and accepted 7. AST sends funds, minus applicable escrow fees, to distributor

Distributor

$

4

5

6

$

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Gold River – Financial Settlement* Services

*Service launch projected for Q2 2018

Credit seller

Accounts

Debit buyer

Accounts

Buyers

Sellers

Gold River Payment Gateway

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Gold River – Value-added Services Summary

Materials Trading

Financial Transaction Settlement

Term Loans

Manufacturers and Other Raw Material Users

Raw Materials Distributors and Resellers

PO Financing Escrow

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Selected Financial & Related Information

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Gold River – Gross Profit Margins* by Service Type

Materials Trading

Financial Transaction Settlement

Term Loans PO Financing

4%-12%

1%-5% 1%-5%

5%-10%

Escrow

1%-5%

*Expressed as a percentage of value of transaction. AST earns 50% of PO Financing and Term Loan interest charges paid by clients, while ZHWY earns the other 50%. So PO Financing and Term Loan net margins will be 50% of value of gross margins shown

Based on historical data specific to the industry, AST expects that 75% to 80% of all transactions conducted on Gold River will require at least one value-added service

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Asia Synergy Tech – Revenue Model with Gold River Platform

Raw Material Users

AST receives raw material order from raw material user worth an amount of “X”, along with value-added service requests for an amount of “Y” (Revenues)

AST orders raw materials from suppliers for an amount of “Z” (Expenses)

AST’s profit on the transaction is the difference between the sum of X and Y minus Z (X + Y – Z = Profit)

Raw Material Suppliers

Raw Materials Order: $100 PO Financing (net): $5 Total Transaction Value: $105 Payable to AST: $105

Revenue Side of Transaction

Raw Materials Cost: $95 Payable by AST: $95

Expense Side of Transaction

Transaction Example 1 Transaction Example 1

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Peak Positioning – Operational Highlights & Key Milestones

*Projected date

June ‘15 Sept ‘15 Dec ‘15 Mar ‘16 June ‘16 Sept ‘16

Aug. 2015, Peak files Q2 2015 statements: YTD revenues of $36.4K; YTD losses of $543.7K; total assets of $1.77M; total liabilities of $2.66M

Oct. 2015, Peak moves from TSX Venture Exchange to Canadian Securities Exchange

Dec. 2015, Peak signs strategic investment partnership with ZHWY

Jan. 2016, Peak established Hong Kong subsidiary holding

Apr. 2016, ZHWY Chairman visits Peak in Montreal

May 2016, Peak and ZHWY close investment partnership transaction

June 2016, Peak established Chinese operating subsidiary (AST)

July 2016, AST announces PO agreements totalling CAD$575M

July 2016, Peak announces beta testing of Gold River platform

Aug. 2016*, AST conducts first transaction related to CAD$575 PO agreements

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Peak Positioning – Financial Projections

-$100.0

$-

$100.0

$200.0

$300.0

$400.0

$500.0

2015 2016 2017

$0.0

$100.0

$500.0

$1.9

$98.0

$475.0

-$1.9

$2.0 $25.0

Revenues

COGS & Expenses

EBITDA

(In millions of CAD$)

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Appendix

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Peak Positioning Management Structure and Board Composition

Peak Board of Directors

Charles-Andre Tessier, LL. L. Chairman, Peak

Jiang Wang, BBA Chairman, Zhonghai Wanyue

Johnson Joseph, MBA CEO, Peak

Laval Bolduc, CPA CA CFO, Peak

Liang Qiu, M. Sc. CEO, Asia Synergy

Mark Dumas, B. Sc. Director, Peak

Johnson Joseph CEO

Laval Bolduc CFO

Yves Renaud Senior VP

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Peak Positioning Director Bios

Charles-Andre Tessier, LL. L., Chairman, Peak Positioning Mr. Tessier is a business lawyer and advisor working mainly in the IT, telecom and manufacturing sectors servicing companies such R3D Consulting Inc., DMR Group Inc., BioChem Pharma, and BCF Business Lawyers LLP. He sits on the board of a number of private and public companies and non-profit organizations and sat on the Executive Committee of the Association of Canadian General Counsel. Mr. Tessier holds a Civil Law degree and a Bachelor’s degree in Administration from the University of Ottawa and has been a member of the Barreau du Quebec since 1980.

Jiang Wang, BBA., Chairman, Zhonghai Wanyue By all accounts, Mr. Wang is an accomplished entrepreneur and businessman. As a graduate of the Central University of Finance and Economics in Beijing, he worked in China’s financial services industry for several years, working his way up to vice president positions at some of the country’s largest banks. He decided to venture on his own in the early 2000s and started his own financial investment company (the Zhonghai Wanyue Group). After diversifying its holdings over the years, the Zhonghai Wanyue Group now includes over 29 subsidiaries operating in various industries, generating combined annual revenues of approximately CAD$4.3 billion as of 2015.

Johnson Joseph, MBA, CEO, Peak Positioning Mr. Joseph has been the President and CEO of Peak Positioning since 2011. During that time he helped successfully guide the company through a number of challenging periods by being able to adapt and adjust the company’s business model to changing and difficult market conditions. He led the company’s transition from being a software development company to becoming a management company of IT assets with a focus on the Chinese technology space. His vision of giving Canadian investors a well-managed and trustworthy vehicle to participate in some of China’s most promising tech sector opportunities is now the driving force behind Peak’s operations. . Prior to becoming Peak’s CEO, Mr. Joseph spent 8 years in the financial services industry as an advisor with Investors Group, one of Canada’s largest mutual fund and asset management companies. Mr. Joseph holds an MBA in Information Technology from HEC-Montreal and a Bachelor’s degree in Finance from Texas Tech University.

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Peak Positioning Director Bios

Laval Bolduc, CPA CA, CFO, Peak Positioning Mr. Bolduc’s professional career as a corporate manager spans more than 35 years. He has held numerous management and executive positions in the fields of auditing, accounting, information control, corporate finance, project management, contract negotiations, and procurement processes in government and private sector partnership projects. He is a full time member of the governance team of the research centre of the Montreal University Hospital and a former team leader for an international chartered professional accountant firm. Prior to becoming Peak’s CFO, he spent almost 20 years advising and assisting clients in Canada and in Europe with respect to the business requirements and financial expertise required for their large-scale projects, particularly in the IT space. During that time he also served as Vice-President in charge of financial planning of large projects for an international IT firm where, on assignment in Canada, the U.S. and Europe, he had the opportunity to direct and participate in various life cycle stages of large-scale projects, and often led negotiations with clients, suppliers and partners related to the projects. Mr. Bolduc holds a Bachelor’s degree in Accounting from the University of Sherbrooke and is a member of the Order of CPAs of Quebec.

Liang Qiu, M. Sc., CEO, Asia Synergy Tech Following a successful entrepreneurial career in Montreal as Founder and CEO of Ollwin International Limited, an e-commerce and IT solution service provider, Mr. Qiu moved to Wuxi, China in 2008 where he co-founded LongKey Software Technology (“LongKey”). Working in partnership with some of China’s largest telecoms and financial institutions, LongKey provides affordable cloud-based Software as a Service (SaaS) business management applications to small and medium size businesses, as well as state of the art financial technology solution (Fintech) to allow these businesses to qualify for and obtain financing from LongKey ’s financial partners. Mr. Qiu served as LongKey’s CTO from the date the company was created until he accepted the CEO position at Asia Synergy Technologies (“AST”) in March 2016. During his tenure at LongKey, Mr. Qiu oversaw everything related to the company’s technical infrastructure as well as its platforms and products to ensure that the solutions they facilitated continued to meet the demands of the company’s partners and those of their clients. In his role as CEO of AST, Mr. Qiu is responsible for the overall execution of the company’s strategic plan and serves as the main liaison between Peak and all of Peak’s Chinese-based operations. Mr. Qiu holds a Master’s degree in Computer Science from McGill University.

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Peak Positioning Director Bios

Mark Dumas, B. Sc., Director, Peak Positioning Mr. Dumas is a private investor in several technology companies and an entrepreneur with expertise in satellite, mobile, and e-commerce technologies, as well as gaming theory. Mr. Dumas was the founder and CEO of SPADAC, a US defense contractor that provided geospatial analysis, data mining and predictive analysis to clients. He went on to sell SPADAC to GeoEye in 2010. Mr. Dumas' professional experience also includes serving as Vice President of Special Projects at DigitalGlobe, a leading global provider of commercial high resolution earth imagery products and services, where he supported mergers and acquisitions activities from 2011 to 2013. He is currently Chairman and CEO of PlayCall Inc., a football gaming application business, and sits on the Board of Weather Analytics, a Bethesda, MD based company that delivers proprietary global climate intelligence to commercial and government clients. Mr. Dumas holds a Bachelor of Science degree in Electrical Engineering from Mississippi State University.

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Asia Synergy Technologies Key Executive Bios

Juan Li, BBA., Chief Operating Officer, Asia Synergy Tech Ms Li’s professional career spans more than 20 years in both private and publicly traded companies. Her career began in the early 1990s as an assistant to the general manager of China Unicom, China’s second largest telecom services provider, where she gained valuable experience into the workings of publicly traded companies. Ms Li then went on to occupy managerial positions at other public and private companies where some of her roles included, among others, the implementation and supervision of management systems, accounting and internal auditing, strategic and internal policy planning, and logistics management. In addition to her role as COO of AST, she is also the Assistant General Manager of the Zhonghai Wanyue Group. Ms Li graduated from National Chiao Tung University in Taiwan with a Bachelor’s Degree in Business Administration. She is also a certified ISO9000 and ISO14000 Internal Auditor, as well as an ISO/TS16949 Quality System Auditor.

Jeff Liu, BBA. Fin., VP Finance, Asia Synergy Tech Mr. Liu is a tax and cost accounting specialist having spent the past 12 years honing his skills in the field. His knowledge and experience with both Chinese GAAP and IFRS makes him a key member of AST’s management team. Mr. Liu is also no stranger to the workings of multi-national companies. Prior to joining AST, he spent 8 years as a financial controller for Caterpillar Inc.’s Chinese division. Mr. Liu attended Nankai University, where he graduated with a bachelor’s degree in Financial Management.

Yan Zheng, BA., Communications Coordinator, Asia Synergy Tech Ms. Zheng held the position of Communications Coordinator at Peak until March 2014. In that capacity, she was responsible for coordinating the company’s communications with its Chinese software development partner, LongKey Software Technology, both at the management level and the software development level. This was a key position within the organization as Ms. Zheng was instrumental in helping the company overcome the language barrier between it and its Chinese partner. Ms. Zheng often served as an interpreter in both technical and management-level meetings. Her educational background and her work experience in the tech space, having held various positions with such companies as Accenture and Bombardier Aerospace, made her ideal for the position, a position she now holds at Asia Synergy Technologies. Ms. Zheng holds a Bachelor’s degree in Digital Imaging and Sound with Computer Applications from Concordia University.

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Contact Info

Peak Positioning Technologies Inc.

Johnson Joseph President & CEO T: (514) 340-7775 x 501 E: [email protected] CHF Investor Relations

Cathy Hume CEO T: (416) 868-1079 x 231 E: [email protected] Paradox Public Relations

Carl Desjardins Managing Partner T: (514) 341-0408 E: [email protected]