KinerjaPay Corp (OTCMKTS:KPAY) rallied Monday after announcing that the digital payment and e-commerce platform has received a signed commitment from Indonesia’s PT Investa Wahana Development to invest $200 million.
The US-traded, Indonesia-focused KinerjaPay said in a press release that Wahana Group has signed up for $100 million in Series F and an additional $100 million in Series G convertible preferred stock. KinerjaPay is expected to apply for trading on the Nasdaq, according to a person familiar with the company.
Shares of KinerjaPay increased $0.11, or 56%, to $0.31 on Monday' s OTC Markets trading.
Both series of stock bear annual dividends of 6%. The Series F stock is convertible into common stock at an average of $1.80 per share while the Series G stock provides for the company to force the conversion at $1.80 per share provided that KinerjaPay shares are trading at $3.50 per share or higher for a period of 20 days beginning six months after the date of issuance. Closing of the deal is expected in about 10 days.
KinerjaPay said it plans to use the proceeds to fund its peer-to-peer lending operations, potential acquisitions and strategic investments. The company also plans to repurchase its stock in the open market subject to Securities and Exchange Commission rules.
'Accelerate our growth plan'
"This investment commitment ... will accelerate our growth plan for 2019 as we evaluate several potential acquisitions as well as proceed with strategic investments," CEO Edwin Witarsa Ng said in a statement.
Based in Indonesia, KinerjaPay provides a digital payment solution that can be used while shopping online at its marketplace platform.
Wahana Group is a firm whose investments include commercial and residential buildings throughout Indonesia inlcuding Surabaya, which is the nation's second-largest city, as well as Bali. The firm has been working on planning for the expansion of Terminal 3 at the Surabaya airport.
–This story has been updated to give Monday's stock trading and details on the Wahana Group–
Contact Dennis Fitzgerald at [email protected]