KinerjaPay Corp (OTCMKTS:KPAY) said Monday that it expects to receive a bank guarantee of $30 million this week to fund its KFUND lending operation.
The guarantee is a crucial step in activating its $25 million credit facility, which will allow the mobile payment solutions company to draw down $22.5 million over the next three months.
The company received a transmission from the Bank of China scheduling the transfer for January 29. The final transfer, an MT-760, will be sent on behalf of Infinity Venture Capital Pte Ltd after the banks reopen following the Chinese New Year holiday break, the company said.
READ: KinerjaPay eyes significant revenue streams as it gears up to execute peer-to-peer lending platform
"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,” CEO Edwin Ng said in a statement. “We have gone through an extensive education to finally reach our goal of using these bank guarantees to fund our KFUND lending operations.”
KinerjaPay also plans to use proceeds from the investment to pay off its convertible debt and advance a previously-announced stock buyback program.
"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,” Ng said. “They agree we have a bright future.”
KinerjaPay is also awaiting another bank guarantee from Gabriel Capital Ltd, although it has had trouble breaking up its commitment into guarantees smaller than $100 million at a time, Ng said.
Jakarta-based KinerjaPay is a micropayments and microloans business offering digital payments and an e-wallet system. The company has a target of reaching 25,000 loans per month down the road to achieve a minimum $5 million market size on a monthly turnover to turn profitable.
Contact Andrew Kessel at [email protected]
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