Shares of KinerjaPay Corp (OTCMKTS:KPAY), the Indonesian digital payment and e-commerce platform, soared Monday after the company announced further progress on its commitment from Indonesia’s PT Investa Wahana Development to invest $200 million.
As previously announced, Wahana Group has signed up for $200 million in Series F and Series G convertible preferred stock.
On Monday, KinerjaPay said it has received Wahana’s “firm and continuing” commitment to closing its funding to KPAY in a timely manner.
In response, KinerjaPay shares jumped more than 16% to $0.50 in midday trade in New York.
The initial delay in securing the funding since KinerjaPay reported the Wahana Group’s subscription for the preferred stock in January stemmed from the complexity of US federal banking regulations which make it challenging to accept $200 million in funding from an Indonesian-based investor.
But KinerjaPay now expects the process to close the funding should be completed within the next 30 days or sooner after moving to use its existing bank accounts in Indonesia.
“The company has agreed to engage the services of a professional banking consultant who has recommended together with the Wahana Group, that the company utilize KPAY’s existing banking relationships in Indonesia,” said Edwin Ng, KinerjaPay’s CEO. “To that end, KPAY has submitted all documents necessary to the Investor’s bank to establish a credit line to facilitate receipt of the $200 million investment.”
Rio Chandranegara, Wahana’s director of business development, also confirmed the company’s commitment to the funding. "Wahana Group is committed to closing its subscription for the Preferred Stock by accessing several asset bases and resources owned by Wahana Group and is further committed to a long term and mutually beneficial relationship as a strategic partner and shareholder of KPAY," he said.
KinerjaPay CEO Ng earlier told Proactive Investors the $200 million investment would “change everything” for the company which expects to grow in 2019 and work towards a Nasdaq Stock Market listing by 2020.
The American company which started in Indonesia is ready to grow its South-East Asian digital payments and microloans business while evaluating potential acquisitions over the next 12 months.
KinerjaPay’s services include the company’s KinerjaPay IP digital payments and e-wallet system (KPAY) and KinerjaFund (KFUND) microloan service. KinerjaPay’s focus is on regions with large un-banked and under-banked populations, and areas with minimal use of traditional credit cards.
Wahana Group, meanwhile, is a firm whose investments include commercial and residential buildings throughout Indonesia.
Contact Ellen Kelleher at [email protected]